Comments on: Savings Bond interest rate calculations

by: Tom Adams

Mon, 19 Jan 2009 16:24:16 +0000

Donnie - No, that feature applies only to EE bonds.

Tom Adams

by: Donnie Adams

Sat, 17 Jan 2009 16:02:06 +0000

Do Series I bonds have anything like the one time 20 year bump-up in value like the Series E bond?

by: Tom Adams

Wed, 14 Jan 2009 15:06:29 +0000

Gail - use the Savings Bond Calculator at the top-right of this page to determine how much of each bond is interest.

The amount of tax you'll have to pay on that interest depends on your other income - you add the interest to your tax return for the year you cashed the bond - and can vary from 0% to 35%.

Tom Adams

by: Gail

Wed, 14 Jan 2009 01:23:34 +0000

I have 4 mature Series E Savings Bonds that I would like to redeem. They are qty 3 for $25 and qty 1 for $50. What is my interest/tax on these?

by: Dan

Fri, 14 Nov 2008 17:00:11 +0000

Also EE Bonds, if held for a full 20 years, will get a one-time bump in value to double the purchase price. This implies a 3.5% annual rate over the full 20 years, if held that long.

(Not saying that EE bonds are a good deal, just pointing out the effect on the otherwise fixed rate.)

by: Tom Adams

Thu, 13 Nov 2008 14:38:04 +0000

Davin - it depends on whether you're talking about Series EE Savings Bonds or Series I Savings Bonds and whether you're talking about a new bond issued today or one issued in the past.

With today's Series EE, the rate is fixed, although it's currently 1.3%, not 5%. However, for Series EE Savings Bonds issued before May 2005, rates are variable.

With Series I, there is a fixed rate component, currently 0.7%. The rate of inflation is added to that. Currently that rate is 4.92%, for a total rate of 5.64% the first six months you own the bond. Every six months after that the rate is adjusted to match the inflation rate.

Tom Adams