Series EE savings bonds are safe, low-risk savings products that pay interest based on current market rates for up to 30 years for bonds purchased May 1997 through April 30, 2005. You may purchase EE Bonds via TreasuryDirect or at almost any financial institution, or by using an online mail-in order form. As a TreasuryDirect account holder, you can purchase, manage, and redeem EE Bonds directly from the web.
United States EE Bonds are usually purchased to:
Supplement retirement income
Give as a gift
Rates & Terms
EE Bonds you purchased between May 1997 and April 30, 2005, earn a variable market-based rate of return.
Series EE Bonds issue dated May 2005 and after will earn a fixed rate of interest.
They are an accrual-type security, which means interest is added to the bond monthly and paid when you cash in the bond.
Paper bonds are sold at half the face value; i.e., you pay $25 for a $50 bond.
Electronic bonds purchased via TreasuryDirect are sold at face value; i.e., you pay $25 for a $25 bond.
Minimum term of ownership: 1 year
Interest-earning period: 30 years
Early redemption penalties:
Before 5 years, forfeit 3 most recent months' interest
After 5 years, no penalty
Interest on savings bonds is subject to taxes imposed under the Internal Revenue Code of 1986. The bonds are exempt from taxation by any State or political subdivision of a State, except for estate or inheritance taxes.
Interest earnings are subject to Federal income tax.
Interest earnings may be excluded from Federal income tax when bonds are used to finance education (see education tax exclusions). Restrictions apply.
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