What are series EE bonds?
EE series bonds are federally-issued, low-risk savings bonds that earn interest for up to 30 years. Interest on EE bonds is exempt from state and local taxes, and may also be exempt from federal taxes if the bonds are used to finance education expenses.
EE bonds were first issued in 1980, and replaced the E series of savings bonds. EE bonds earn interest at a fixed rate, which is set when the bond is issued. This rate remains unchanged for the life of the bond. In addition, EE bonds earn a variable rate of interest, which is adjusted semiannually based on the movement of market interest rates.
How do EE series bonds work?
EE series bonds are government-issued savings bonds that earn a fixed rate of interest over the life of the bond. The bonds are issued in denominations of $50, $75, $100, $200, $500, $1,000, and $5,000. Interest is paid semiannually and bonds can be held for up to 30 years.
EE series bonds are one type of savings bond offered by the U.S. Treasury. The other type is I series bonds. I series bonds are similar to EE bonds, but they adjust for inflation and earn a variable rate of interest.
Both EE and I series bonds can be purchased directly from the U.S. Treasury or through commercial banks and other financial institutions. There is no limit on the number of EE or I bonds that can be purchased in a year, but there is a limit on the amount of money that can be invested in each type of bond. For 2020, the limit is $10,000 per person for EE bonds and $5,000 per person for I bonds.
What are the benefits of EE series bonds?
EE bonds are U.S. Savings Bonds that earn a fixed rate of interest over time. They are issued at half the face value, so you pay $50 for a $100 bond. EE bonds purchased between May 1, 1997 and April 30, 2005 earn a variable rate of interest. The interest rate set at the time of each semi-annual interest accrual period is based on the then current five-year Treasury yield plus a fixed rate of return. EE bonds issued after April 30, 2005 earn a fixed rate of return. For example, an EE bond purchased on May 1, 2018 will earn the same fixed rate of return for its entire 30-year life.
See:1. us savings bonds vs. bank cbs, 2. what is unique about savings bonds.
How can I purchase EE series bonds?
EE series bonds are United States Treasury securities that are backed by the full faith and credit of the U.S. government. These bonds come with guaranteed principal and interest payments, making them a safe and secure investment option.
EE series bonds can be purchased directly from the U.S. Treasury or from a financial institution that is authorized to sell them. You can also purchase EE series bonds through TreasuryDirect, a program offered by the U.S. Department of the Treasury.
When you purchase an EE series bond, you will be required to pay for it using cash or a check. The minimum purchase amount is $25, and there is no maximum purchase amount. EE series bonds can be held for up to 30 years, and they will continue to earn interest until they are redeemed.
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