Series EE Savings Bonds
NOTE: Tax questions? We have answers!
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 issued from May 2005 on) |
EE bonds we sell today earn the same rate of interest (a fixed rate) for up to 30 years. When you buy the bond, you know what rate it will earn for at least the first 20 years. Treasury announces the rate for new bonds each May 1 and November 1. See: Comparing I Bonds to 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 – Current and Past |
| If I buy an EE bond now, what interest will it earn? |
The interest rate for a bond bought from May 2022 through October 2022 is an annual rate of 0.10%. Regardless of the rate, at 20 years the bond will be worth twice what you pay for it. If you keep the bond that long, we make a one-time adjustment then to fulfill this guarantee. Learn more on Interest Rates – Current and Past |
| Is it taxable? | Federal income tax: Yes State and local income tax: No See: Tax Considerations Using the money for higher education may keep you from paying federal income tax on your interest. See: Education Planning |
| Minimum purchase | $25 for a $25 EE bond. |
| Maximum purchase | $10,000 each calendar year for each Social Security Number. |
| Available bonds | Any amount from $25 to $10,000 to the penny. For example, you could buy an EE Bond for $50.23. |
| How long must I keep an EE Bond? | EE bonds earn interest until they reach 30 years or until you cash them, whichever comes first. You can cash them after 1 year. But if you cash them before 5 years, you lose the last 3 months' interest. (For example, if you cash an EE bond after 18 months, you get the first 15 months of interest.) |
| How do I buy an EE Bond? | In electronic form in your TreasuryDirect account You can arrange to buy through payroll direct deposit. See http://www.treasurydirect.gov/indiv/products/prod_tdpayrollinfo.htm. |
| What about E bonds? | Before the EE Series, Treasury sold E bonds. History of U.S. Savings Bonds All E bonds have stopped earning interest; but if you own them, you can still cash them. Redeeming (Cashing) EE Bonds |
