EE/E Savings Bonds
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 through your employer's payroll deduction plan, if available. As a TreasuryDirect account holder, you can purchase, manage, and redeem EE Bonds directly from your Web browser.
*Series EE bonds purchased May 2005 and after will earn a fixed rate of return. See our press release for more information.
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Use EE Bonds to:
- Finance education
- Supplement retirement income
- Give as a gift
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| Current Rate: | 0.70% through October 31, 2009 (fixed rate) |
| Minimum purchase: | $25 for a $50 EE Bond when purchasing paper bond certificates $25 for a $25 EE bond when purchased electronically via TreasuryDirect |
| Maximum Purchase (per calendar year): |
$5,000 in TreasuryDirect and $5,000 in paper bonds (purchase price) |
| Denominations: | Paper bonds: $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000 Electronic bonds via TreasuryDirect: purchase to the penny for $25 or more |
| Issue Method: | Paper bond certificates or Electronic issue in TreasuryDirect accounts |
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Rates & Terms
- EE/E 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.
Redemption Information
- 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
Tax Considerations
- Interest earnings are exempt from State and local income taxes, but are subject to Federal, State, and local estate, inheritance, gift, and other excise 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.
EE/E Bond-Related FAQs
- How do market rates affect EE bonds?
- Is my EE bond eligible for the Education Tax Exclusion?
