EE Savings Bonds
Use EE Bonds to
- save in a reliable, low-risk, government-backed product
- supplement your retirement income
- give as a gift (See: Giving Savings Bonds as Gifts)
- pay for education (See: Using EE or I Bonds for Education)
|√ at a glance|
|What is an EE Bond?
(EE Bonds with issue dates from May 2005 on)
A security that earns the same rate of interest (a fixed rate) for up to 30 years. When you buy the bond, you know what rate of interest it will earn. Treasury announces a fixed rate each May 1 and Nov. 1 for new EE bonds
|Were older EE Bonds different?||
Yes. EE Bonds bought from May 1997 through April 2005 earn a rate of interest that changes every six months (a variable rate). EE Bonds bought before May 1997 earn interest at different rates depending on when they were bought.
Learn more on Interest Rates for EE Bonds – Current and Past
|If I buy an EE Bond now, what interest will it earn?||
The interest rate for bonds bought between May 1, 2014 and October 31, 2014 is an annual rate of 0.50%.
|Is it taxable?||
Federal income tax: Yes
State and local income tax: No
Using the money for higher education may keep you from paying federal income tax on your savings bond interest. See: Using EE or I Bonds for Education
Electronic: $25 for a $25 EE Bond.
$10,000 each calendar year for each Social Security Number. You may buy up to $10,000 in electronic EE Bonds.
Electronic: Any amount from $25 to $10,000 to the penny. For example, with electronic bonds, you could buy an EE Bond for $50.23.
|How long must I keep an EE Bond?||
EE Bonds are meant to be long-term investments. They earn interest for up to 30 years.
You can cash them in after 1 year. But if you cash them in before 5 years, you lose the last 3 months' interest. (For example, if you cash in an EE Bond after 18 months, you get the first 15 months of interest.)
|How do I buy an EE Bond?||
Electronic: Through your TreasuryDirect account
You can arrange to buy electronic bonds through payroll direct deposit. See http://www.treasurydirect.gov/indiv/products/prod_tdpayrollinfo.htm.
|What about older E Bonds?||
Before the EE Series, Treasury sold E Bonds.
All E Bonds have stopped earning interest; but if you own E Bonds, you can still redeem them (cash them in). Redeeming (Cashing in) EE Bonds
More about EE/E Savings Bonds
- FAQs about EE Bonds
- Buying EE Bonds
- Comparing I Bonds to EE Bonds
- Converting Paper Savings Bonds to Electronic Bonds (SmartExchange®)
- Death of a Savings Bond Owner
- Giving Savings Bonds as Gifts
- Interest Rates for EE Bonds – Current and Past
- Redeeming (Cashing in) EE/E Bonds
- Registering an EE Bond
- Replacing/Reissuing a Lost or Destroyed EE/E Bond
- Tax Considerations for EE/E Bonds
- Using EE Bonds for Education