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EE Bonds Fixed Rate FAQs

Which Series EE Bonds are affected by the new way of setting rates?

Series EE Savings Bonds issued on and after May 1, 2005, will earn a fixed rate of interest, set at the time of purchase. The new rate will apply for the 30-year life of each bond, including a 10-year extended maturity period, unless a different rate or rate structure is announced for the extension period. Interest accrues monthly and is compounded semiannually. EE bonds with issue dates prior to May 1, 2005, will continue to earn interest according to the terms in effect when they were issued.

How often will the fixed rates change for new issues?

A fixed rate will be announced for new issues each May 1 and November 1.

How will the fixed rate on EE bonds be determined?

The Department of the Treasury will set the fixed rate administratively. The rate will be based on 10-year Treasury note yields and adjusted for features unique to savings bonds, such as the tax deferral feature and the option to redeem the savings bonds at any time after the initial holding period.

How do you purchase EE bonds, and how long must they be held?

EE bonds can be purchased in electronic form, at face value, by opening a TreasuryDirect account. Purchase prices for electronic securities start at $25, and they can be purchased in any amount above that up to $10,000 per person, per calendar year.  As of January 1, 2012, paper savings bonds are no longer sold at financial institutions. 

When will new EE bonds reach original maturity?

EE Bonds issued on and after May 1, 2005, will reach original maturity at 20 years. These bonds also are guaranteed to double in value from their issue price no later than 20 years after their issue dates. This is the bonds' original maturity. If a bond does not double in value as the result of applying the fixed rate for 20 years, the Treasury will make a one-time adjustment at original maturity to make up the difference. During the 10-year extended maturity period that follows original maturity, bonds will earn interest at the fixed rate set at issue unless a new rate or new terms and conditions are announced for the extension period.