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May 1995 through April 1997 (EE Bond Rates and Terms)

This page covers Series EE Savings Bonds that were issued between May 1995 and April 1997.

On this page:

Interest rate

EE Bonds issued from May 1995 through April 1997 earn a variable rate of interest. Treasury determines the rate each May 1 and November 1 and applies that rate for the next six months.

For six-month rate periods that start during the time period from November 1, 2016 through April 30, 2017, the annual interest rate that applies to EE Bonds with issue dates from May 1995 through April 1997 is 1.01%.

The rate that applies to a particular EE Bond with an issue date from May 1995 through April 1997 changes every sixth month from the bond's issue date. For example, for an EE Bond with an issue date of October 1996, a rate change announced in May takes effect on the following October 1 and a rate change announced in November takes effect on the following April 1.

How do these EE Bonds earn interest?

EE Bonds with issue dates from May 1995 through April 1997 earn interest once every six months.

  • The interest is compounded semiannually. The interest that is earned every six months is added to the bond's value. The next interest accrual six months later is earned on the total value (original price plus accumulated interest that had been included in the bond's value before and at the start of that six-month period).

When do my EE Bonds earn interest?

EE Bonds earn interest from the first day of the month you buy them.

  • Interest is added to the bond every six months.
  • The interest is compounded semiannually. Twice a year, all the interest that the bond earned in the previous six months is added to the main (principal) value of the bond. Interest in the next six months is then earned on the new value. In month 7, you earn interest on the original price + six months of interest.

    (However, the value of an EE Bond that is less than five years old does not include the latest three months of interest. See "Is there a penalty for cashing in early?" further down this page.)

Is there a penalty for cashing in early?

Yes, but only if you cash your bond within the first five years. You may cash in (redeem) an EE Bond after 12 months. However, if you redeem the bond in less than five years after its issue date, you do not get the last three months of interest. For example, if you redeem an EE Bond after 18 months, you get the first 15 months of interest.

Should I redeem bonds in a particular month?

Because interest is added only once every six months, you may want to consider that six-month mark as you plan when to redeem the bond.

  • When you redeem these bonds, you get the value of the bond as of the last date that interest was added.
  • If you redeem the bond between the dates that interest is added, you do not get interest for the partial period.
  • Therefore, when you are ready to redeem the bond, it is a good idea to redeem it soon after the date that interest was added. To know which two months in every year interest is added to your bond, see When does my bond change rates? further down on this page.

How long do these EE Bonds earn interest?

Up to 30 years

EE Bonds issued from May 1995 through April 1997 earn interest differently during those 30 years.

Years after issue:
EE Bonds dated May 1995 – April 1997
Type of interest rate for six-month rate periods in each segment of bond's life
Years 1 – 5 "short-term rate"
Years 6 - 17 "long-term rate"
Years 18 - 30 "long-term rate" but see the notes right after this table

Two notes about years 18 to 30:

  • If an EE bond in this group was not worth its face value or more when it was 17 years old, Treasury made a one-time adjustment to make the bond worth its face value. (For example, you paid $50 for a $100 bond in April 1997. Treasury guaranteed that it would be worth at least $100 when it was 17 years old – in April 2014. If the interest the bond earned by then did not bring its value to $100, Treasury added value to it to reach $100.)
  • EE bonds issued between May 1995 and April 1997 reached original maturity in 17 years. After that they keep earning interest until they are 30 years old, and years 18 to 30 are an "extended maturity period." Treasury had the right to change the way the interest is determined for this extended maturity period if it did so before the extension started. If Treasury did not do that, the bond continues to earn interest in the same way it did in years 6 through 17.

Do I pay tax on the interest?

As owner of an EE Bond, you pay federal income tax, but not state or local income tax, on the interest the bond earns.

If you use the bond money to pay certain qualifying educational expenses, you may not have to pay federal income tax on the interest. Using EE Bonds for Education.

When do I pay tax?

You may put off paying the tax until you file your federal income tax return for the year in which you redeem the EE Bond. (A few exceptions are some situations in which we reissue or re-register the bond.)

You may also decide to pay tax on the interest every year. (This may be a good idea for bonds that a child owns.)

For more details: Tax Considerations for EE/E Bonds.

How does Treasury decide on the interest rate for these EE Bonds?

For EE Bonds that we issued from May 1995 through April 1997, we determine the interest rate every May 1 and November 1 by looking at U.S. Treasury security yields for the previous six months.

The rate we now apply to these EE Bonds (the "long-term" rate) is 85% of the six-month average of 5-year U.S. Treasury security yields.

What have interest rates been for these EE Bonds?

Date the rate was set for EE Bonds
issued from May 1995 through April 1997
"Long-term" interest rates
for the 6-month rate periods starting on or after that date
November 1, 2016 1.01%
May 1, 2016 1.24%
November 1, 2015 1.31%
May 1, 2015 1.27%
November 1, 2014 1.41%
May 1, 2014 1.34%
November 1, 2013 1.12%
May 1, 2013 0.65%
November 1, 2012 0.59%
May 1, 2012 0.76%
November  1, 2011 1.12%
May 1, 2011 1.67%
November 1, 2010 1.42%
May 1, 2010 2.04%
November 1, 2009 2.06%
May 1, 2009 1.55%
November 1, 2008 2.65%
May 1, 2008 2.58%
November 1, 2007 3.88%
May 1, 2007 3.92%
November 1, 2006 4.15%
May 1, 2006 3.88%
November 1, 2005 3.41%
May 1, 2005 3.23%
November 1, 2004 3.07%
May 1, 2004 2.68%
November 1, 2003 2.46%
May 1, 2003 2.51%
November 1, 2002 3.07%
May 1, 2002 3.74%
November 1, 2001 3.84%
Date the rate was set for EE Bonds
issued from May 1995 - April 1997
"Short-term" variable interest rates for the 6-month rate periods starting on or after that date – applied for the first five years of the bond's life "Long-term" variable interest rates for the 6-month rate periods starting on or after that date
May 1, 2001 3.77% 4.25%
November 1, 2000 5.36% 5.23%
May 1, 2000 5.15% 5.41%
November 1, 1999 4.35% N/A
May 1, 1999 3.91% N/A
November 1, 1998 4.01% N/A
May 1, 1998 4.47% N/A
November 1, 1997 4.53% N/A
May 1, 1997 4.63% N/A
November 1, 1996 4.56% N/A
May 1, 1996 4.36% N/A
November 1, 1995 4.75% N/A
May 1, 1995 5.25% N/A

When does my bond change rates?

Issue month of your bond New rates take effect
January January 1 & July 1
February February 1 & August 1
March March 1 & September 1
April April 1 & October 1
May May 1 & November 1
June June 1 & December 1
July July 1 & January 1
August August 1 & February 1
September September 1 & March 1
October October 1 & April 1
November November 1 & May 1
December December 1 & June 1