Rates & Terms

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 were sold at half the face value; i.e., you paid $25 for a $50 bond.

Electronic bonds purchased via TreasuryDirect are sold at face value; i.e., you pay $25 for a $25 bond.

More about EE/E Savings Bonds rates in the Research Center

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

More about EE/E Savings Bonds redemption in the Research Center

Tax Considerations

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.

More about EE/E Savings Bonds tax considerations in the Research Center

EE/E Bond-Related FAQs

How do market rates affect EE bonds?

Is my EE bond eligible for the Education Tax Exclusion?

See EE/E Savings Bonds FAQs

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