Before May 1995 (EE Bond Rates and Terms)
This page covers Series EE Savings Bonds with issue dates from January 1980 through April 1995.
On this page:
- EE Bonds January 1980 – April 1995: What is my bond worth now?
- Should I redeem bonds in a particular month?
- When did (or will) my paper bond reach its face value?
- Do I pay federal income tax on the interest?
- When do I pay federal income tax?
- How does Treasury figure the interest rate for these bonds?
- What is the Market-based rate for bonds issued prior to 1995?
Some of these bonds have stopped earning interest. EE Bonds earn interest for up to 30 years. To find out whether your bond is earning interest and what it is worth: see the Savings Bond Calculator
The Savings Bond Calculator also shows
- when interest will next be added to the dollar value of an EE Bond that is still earning interest (under "Next Accrual").
- when an EE Bond will stop earning interest or has stopped earning interest (under "Final Maturity").
For some EE Bonds, interest is added only once every six months. In that case, you may want to consider that 6-month anniversary as you plan when to redeem the bond.
Use the Savings Bond Calculator to find out when interest will next be added to the dollar value of an EE Bond that is still earning interest. (Look for "Next Accrual.")
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.
|Issue month of your bond||Six month anniversary is on|
|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|
The original price of each of these paper EE Bonds was one-half of its face value. (For example, you paid $25 for a paper $50 EE Bond.)
The bond started to earn interest on what it cost (not on its face value). Over time, with compounded interest, the bond got (or gets) closer and closer to its face value.
Treasury guarantees that an EE Bond will be worth at least its face value when it reaches its original maturity date. The original maturity date for EE Bonds issued between January 1980 and April 1995 varied with the issue date. The table below shows the guaranteed original rate of return and the original maturity date for these EE Bonds.
|EE Bond issue date||Overall rate of return originally guaranteed for original maturity period||Original maturity period|
|March 1993 – April 1995||4% per year, compounded semiannually||18 years|
|November 1986 – February 1993||6% per year, compounded semiannually||12 years|
|November 1982 – October 1986||7.5% per year, compounded semiannually||10 years|
|May 1981 – October 1982||9% per year, compounded semiannually||8 years|
|November 1980 – April 1981||8% per year, compounded semiannually||9 years|
|January 1980 – October 1980||7% per year, compounded semiannually||11 years|
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
You may put off paying the tax until you file your federal income tax return for the year in which the first of these events occurs:
- You redeem (cash in) the EE Bond.
- The EE Bond stops earning interest.
- You have the EE Bond reissued (re-registered) to reflect a taxable ownership change.
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: see Tax Considerations for EE/E Bonds
Issued before November 1982
EE Bonds with issue dates before November 1982 were issued with a fixed rate of interest. Beginning in November 1982, a new interest rate methodology was introduced. For an EE Bond with an issue date in the time period from January 1980 through October 1982 that is less than 30 years old and still earning interest: interest is earned for the entire period from the first day the bond increased in value on or after November 1, 1982, either
- at a guaranteed rate or guaranteed rates; or
- at a market-based rate (85% of averages of 5-year Treasury securities yields)
whichever category of rates, separately, by itself, over that entire period, produces the higher redemption value for the bond.
Issued from November 1982 through April 1995
An EE Bond with an issue date in the time period from November 1982 through April 1995 earns interest either
- at a guaranteed rate or guaranteed rates; or
- at a market-based rate (85% of 6-month averages of 5-year Treasury securities yields)
whichever category of rates, separately, by itself, over the entire period from date of issue, produces the higher redemption value for the bond.
Understanding the two paths to interest
Sometimes it helps to think about the way these savings bonds earn interest by envisioning two parallel, but entirely separate and independent interest-earning paths, both starting on a certain date.
- For EE Bonds issued before November 1982 that are still earning interest, that date is the first interest accrual date on or after November 1, 1982.
- For EE Bonds issued from November 1982 through April 1995, that date is the issue date of the bond.
On one path, interest is earned only at a guaranteed rate or guaranteed rates for the entire period.
On the other path, interest is earned only at market-based rates for the entire period.
In other words, we compare the cumulative effect of applying only market-based rates for the entire period (for example, from date of issue) to the cumulative effect of applying only a guaranteed rate or guaranteed rates for that entire period.
Do the guaranteed rates change?
Treasury may change the guaranteed rate when an EE Bond issued from January 1980 through April 1995 completes its original maturity period. At that time, the bond enters an extended maturity period. (See the table above for the original maturity periods.)
Treasury may change the guaranteed rate again every time that EE Bond completes an extended maturity period and enters a new extension.
A changed guaranteed rate for an extension has to be announced before the extension starts.
An extended maturity period is usually 10 years in length. The exception is when a period of a different length is needed to complete the EE bond's total interest-earning life span of 30 years.
The 5-year U.S. Treasury securities yields shown in the table below, which apply to bonds/notes issue-dated before May 1995, and held for at least five years, are calculated each May 1 and November 1. The market-based rate is:
- Set at 85% of the average of these yields for the applicable earning periods.
- Rounded to the nearest one-hundredth of one percent for bonds issued May 1989 and later, and for bonds/notes which entered an extended maturity period on or after that date; otherwise, the rate is rounded to the nearest one-quarter of one percent.
- Applied to the entire period for which the bond/note is entitled to market-based earnings.
|EFFECTIVE DATE||5-YEAR TREASURY SECURITIES YIELDS|
|NOV 1, 2015||1.55%|
|MAY 1, 2015||1.50%|
|NOV 1, 2014||1.65%|
|MAY 1, 2014||1.58%|
|NOV 1, 2013||1.32%|
|MAY 1, 2013||0.76%|
|NOV 1, 2012||0.70%|
|MAY 1, 2012||0.90%|
|NOV 1, 2011||1.32%|
|MAY 1, 2011||1.97%|
|NOV 1, 2010||1.67%|
|MAY 1, 2010||2.40%|
|NOV 1, 2009||2.43%|
|MAY 1, 2009||1.83%|
|NOV 1, 2008||3.12%|
|MAY 1, 2008||3.04%|
|NOV 1, 2007||4.57%|
|MAY 1, 2007||4.61%|
|NOV 1, 2006||4.88%|
|MAY 1, 2006||4.56%|
|NOV 1, 2005||4.01%|
|MAY 1, 2005||3.80%|
|NOV 1, 2004||3.61%|
|MAY 1, 2004||3.16%|
|NOV 1, 2003||2.90%|
|MAY 1, 2003||2.96%|
|NOV 1, 2002||3.61%|
|MAY 1, 2002||4.40%|
|NOV 1, 2001||4.52%|
|MAY 1, 2001||5.00%|
|NOV 1, 2000||6.16%|
|MAY 1, 2000||6.36%|
|NOV 1, 1999||5.77%|
|MAY 1, 1999||4.79%|
|NOV 1, 1998||5.11%|
|MAY 1, 1998||5.62%|
|NOV 1, 1997||6.21%|
|MAY 1, 1997||6.31%|
|NOV 1, 1996||6.51%|
|MAY 1, 1996||5.70%|
|NOV 1, 1995||6.08%|
|MAY 1, 1995||7.42%|
|NOV 1, 1994||6.96%|
|MAY 1, 1994||5.53%|
|NOV 1, 1993||5.00%|
|MAY 1, 1993||5.62%|
|NOV 1, 1992||5.93%|
|MAY 1, 1992||6.56%|
|NOV 1, 1991||7.50%|
|MAY 1, 1991||7.73%|
|NOV 1, 1990||8.46%|
|MAY 1, 1990||8.25%|
|NOV 1, 1989||8.21%|
|MAY 1, 1989||9.19%|
|NOV 1, 1988||8.65%|
|MAY 1, 1988||8.12%|
|NOV 1, 1987||8.44%|
|MAY 1, 1987||6.87%|
|NOV 1, 1986||7.13%|
|MAY 1, 1986||8.26%|
|NOV 1, 1985||9.83%|
|MAY 1, 1985||11.17%|
|NOV 1, 1984||12.87%|
|MAY 1, 1984||11.71%|
|NOV 1, 1983||11.04%|
|MAY 1, 1983||10.17%|
|NOV 1, 1982||13.05%|