What happened to my guaranteed interest rate of 6%?
Monday, November 7th, 2005
Categorized as: Series EE US Savings Bonds • Savings Bond interest rates
Your Savings Bond Calculator shows that an EE bond issued in January 1993 is earning 4%. I understood that Savings Bonds issued through March 1993 had a guaranteed minimum of 6%. Would you clarify?
Tom's response
Your January 1993 EE bond earned 6% through December 2004. At that point its original maturity period (the amount of time required for your investment to double in value) ended and the bond entered a new, ten-year, maturity period.
When a Savings Bond that has a guaranteed minimum rate (only bonds issued prior to May 1995 have this feature) enters a new maturity period, the Treasury has the right to change the guaranteed minimum rate, and since March 1993 it's been changing the guaranteed minimum rate to 4%.
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