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.

This page outlines the rates and terms for EE 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 Bonds issued May 2005 and after earn a fixed rate of interest.  The fixed rate is determined by adjusting the market yields of the 10-year Treasury Note by the value of components unique to savings bonds, including early redemption and tax deferral options. 

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.

Interest is added to these bonds monthly, rather than every six months, and 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 interest is added to your bonds.

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

Paper Series EE Savings Bonds were sold at half face value. Electronic bonds purchased via TreasuryDirect are sold at face value; i.e., you pay $25 for a $25 bond.

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

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.