EE/E Bonds Rates & Terms
The rates and terms for your EE/E Bond are determined by when your bond was issued. Select the appropriate link below for your EE/E Bond.
- May 2005 and after
- EE/E Bonds Issued May 1997-April 2005
- EE/E Bonds Issued May 1995-April 1997
- Before May 1995
This page outlines the rates and terms for EE/E bonds purchased May 2005 and after.
For more information, see our Code of Federal Regulations (CFR) Department Circulars, that contain the regulations governing United States Savings Bonds.
Rates
EE/E Bonds issued May 2005 and after:
- Earn a fixed rate of interest
- Rates for new issues are adjusted each May 1 and November 1, with each new rate effective for all bonds issued in the six months following the adjustment
- Increase in value every month rather than every six months
- Interest is compounded semiannually
Liquidity
Savings bonds must be held a minimum of one year. You can redeem them anytime after that time period. When redeeming, it's a good idea to know when your bond next increases in value.
Interest Penalty
A three-month interest penalty will be applied to bonds held less than five years from issue date. This rewards longer-term bond holders who benefit from higher 5-year rates over the full life of the bond. For example, if you buy a bond and redeem it 24 months later, you’ll get back your original investment and 21 months of interest. The value of the bond would be based on the announced rates applied over the initial 21-month period.
Interest Earning Life
At a minimum, the U.S. Treasury guarantees that an EE Bond's value will double after 20 years, its original maturity, and it will continue to earn the fixed rate unless a new rate or rate structure is announced. If a bond does not double in value as the result of applying the fixed rate for 20 years, the U.S. Treasury will make a one-time adjustment at original maturity to make up the difference. Series EE bonds earn interest for 30 years.
Original Maturity for Paper Bonds
Paper Series EE Savings Bonds are sold at half face value.* The Treasury Department guarantees that new issues of Series EE Bonds will double in value by 20 years from the issue date. This is referred to as the original maturity date. The following chart shows the original term for Series EE bonds:
| Issue Date | Original Term |
|---|---|
| 1/80 - 10/80 | 11 years |
| 11/80 - 4/81 | 9 years |
| 5/81 - 10/82 | 8 years |
| 11/82 - 10/86 | 10 years |
| 11/86 - 2/93 | 12 years |
| 3/93 - 4/95 | 18 years |
| 5/95 - 5/03 | 17 years |
| 6/03 - present | 20 years |
*Electronic bonds purchased via TreasuryDirect are sold at face value; i.e., you pay $25 for a $25 bond.
Tax Advantages
- Interest earned on your Series EE Bonds is exempt from state and local income taxes.
- You can defer federal income tax until you redeem the bonds, or they stop earning interest after 30 years.
- Special tax benefits are available for education savings. If you qualify, you can exclude all or part of the interest earned on EE Bonds from income when the bonds are redeemed to pay for post-secondary tuition and fees. Find out more about Education Planning.
