Series EE fixed interest rates

Thursday, May 1st, 2014
Categorized as: Series EE US Savings BondsSavings Bond interest rates

Series EE Savings Bonds issued in May 2005 and later have interest rates that are fixed for 20 years. At that point the Treasury has the right to change the rate for the final ten years that the bond will pay interest.

These Savings Bonds are also guaranteed to double in value in 20 years, which is an implied interest rate of 3.50% if you can hold on that long. When the fixed-base rate is above 3.50%, the bonds will double in value faster than the guarantee.

When the fixed rate is significantly below 3.50%, the redemption value of an EE bond will explode on its 20th anniversary. For example, a $1,000 EE bond investment at a 0.70% fixed rate will have a redemption value of about $1,149 after 19 years and 11 months and a redemption value of $2,000 the following month.

Investing in these low fixed-rate Savings Bonds only makes sense if you plan to hold them for 20 years.

 

Series EE Savings Bond fixed interest rates

Issue Date Fixed Rate 20-year
guarantee
May 05 - Oct 05 3.50% 3.50%
Nov 05 - Apr 06 3.20% 3.50%
May 06 - Oct 06 3.70% 18 years 11 months
Nov 06 - Apr 07 3.60% 19 years 5 months
May 07 - Oct 07 3.40% 3.50%
Nov 07 - Apr 08 3.00% 3.50%
May 08 - Oct 08 1.40% 3.50%
Nov 08 - Apr 09 1.30% 3.50%
May 09 - Oct 09 0.70% 3.50%
Nov 09 - Apr 10 1.20% 3.50%
May 10 - Oct 10 1.40% 3.50%
Nov 10 - Apr 11 0.60% 3.50%
May 11 - Oct 11 1.10% 3.50%
Nov 11 - Apr 12 0.60% 3.50%
May 12 - Oct 12 0.60% 3.50%
Nov 12 - Apr 13 0.20% 3.50%
May 13 - Oct 13 0.20% 3.50%
Nov 13 - Apr 14 0.10% 3.50%
May 14 - Oct 14 0.50% 3.50%
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16 Comments

On November 7th, 2006 Brittany Hanley said:

What about Series EE Savings Bonds issued before May 2005? I have a portfolio containing: 4 bonds issued Jan 1993, 2 bonds issued Dec 1996, and 1 issued Jan 1998. 1)It appears that all of the interest rates are variable, is that correct? 2)Does the same doubling principle hold true, i.e. are these bonds guaranteed to double in value in 20 years?
Thanks-Britt

On November 7th, 2006 Tom Adams said:
On June 26th, 2009 Roger said:

I have $100 EE bonds that I purchased each month since 1990 thru 2009. Which ones should I cash in first and which ones should I hold on to if I need the money over the next four years.

On June 29th, 2009 Tom Adams said:

Roger - You should cash the ones with the lowest rates first, taking into account that the rate on some of your bonds will jump when they reach their original maturity date.

This gets complicated fast, but my book has a table that gives EE bonds letter grades by issue date - cash the ones with the lowest grade first.

Tom Adams

On July 31st, 2009 Temple Myers said:

Tom,
I have EE bonds purchased in Jan. 1993.
They are currently earning 4% a year.
Will they earn this interest rate until 2023?

Temple

On August 3rd, 2009 Tom Adams said:

Temple - Jan 1993 Savings Bonds are guaranteed to earn at least 4% until January 2015. At that point the Treasury could change the minimum guarantee to anything it likes. At of today, the Treasury is still renewing the minimum guarantee at 4%.

Tom Adams

On November 2nd, 2009 Mary Ann said:

The 20-year wait kills the motivation to use EE savings bonds for college. It only sort-of works if the child is less than two years old. Then, the bond could be redeemed during their junior or senior year of college (with the tax break). However, college financial aid programs assume the bond money is immediately available during the freshman and sophmore years, so owning the bond reduces financial aid for those years. The reduction amount varies, depending on the college and the family’s financial strength, so it is impossible to do the math. I love your site!

On November 3rd, 2009 Tom Adams said:

Mary Ann - Agreed. I’ve been recommending I bonds over EE bonds for years.

Tom Adams

On November 3rd, 2009 Marcia Murray said:

Why are EE bonds purchased 05/1985 showing a current rate of N/A? They mature on 05/2015.

On November 4th, 2009 Tom Adams said:

Marcia - Although you don’t say so, I bet from your question you’re using the Savings Bond Wizard. You need to update its data files every six months. From the Tools menu pick Redemption Values… and then click on the Automatic Update button. If your computer’s security software is robust, you may have to tell it to allow the Wizard to access the internet.

Or you can use the calculator at the top right of this page.

Tom Adams

On December 17th, 2009 Suhail said:

Given the clear preference to I bonds versus EE bonds, would you consider EE bonds if you have maxed out our calender limit for I-bonds? Based on comparisons of revailing 1 year CD rates, tax benefits etc. the APY is comparable to EE bonds, seems like they are not an exciting option but an OK place to hold 1-2 year funds. thanks for your comments.

On December 18th, 2009 Tom Adams said:

Suhail - As you point out, interest rates are low everywhere. If you’ve paid off all your debt and aren’t paying interest to anyone, safely earning EE interest may be the best you can do.

Tom Adams

On December 19th, 2009 Suhail said:

Tom, A follow-up question..How would you evaluate the option of choosing between EE Bonds and TIPS? Considering a situation where one has maxed out on the I-Bond purchase limit and has more than $10K of investable cash.

[I would also like to thank you for running this website. The chart that you have on comparing the relative performance of I-Bonds & SP500 is great!]
Suhail

On December 21st, 2009 Tom Adams said:

Suhail - TIPS are also a suitable investment. They are quite a bit more complicated than I bonds, however. My book covers the differences in detail.

Tom Adams

On March 21st, 2010 Tk said:

I have numerous EE bonds issued 08/1985. The return is 4%, is that going to continue till maturity after extensions in 2015, or can it go down(or up, for that matter)?

On March 22nd, 2010 Tom Adams said:

TK - these bonds will stop earning interest in 2015. They are guaranteed to earn at least 4% until then and could earn more if the general level of interest rates rose enough, which seems unlikely.

Tom Adams

Comments Closed

June 1, 2010

After six years, over 400 posts, 3,680 real comments, and over 90,000 spam comments (thank you, Akismet, for making managing a blog with comments possible), I am closing public comments on Savings-Bond-Advisor.com. I will contine to update the main articles on this site, but not the comments.

Virtually every question about Savings Bonds has been asked and answered on this site multiple times. Use the search feature (see the box in the gray area near the top of this page) or the detailed menu on the lower part of the home page to find the information you're looking for. If you have a copy of Savings Bond Advisor, you can ask me a question here.

Tom Adams

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