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TREASURY SECURITIES & PROGRAMS

EE/E Savings Bonds

As of January 1, 2012, paper savings bonds are no longer sold at financial institutions.  This action supports Treasury’s goal to increase the number of electronic transactions with citizens and businesses. See the press release.

Series EE savings bonds are safe, low-risk savings products that pay interest based on current market rates for up to 30 years for bonds purchased May 1997 through April 30, 2005*. You may purchase EE Bonds via TreasuryDirect. As a TreasuryDirect account holder, you can purchase, manage, and redeem EE Bonds directly from your Web browser.

*Series EE bonds purchased May 2005 and after will earn a fixed rate of return. See our press release for more information.

Use EE Bonds to:

  • Finance education
  • Supplement retirement income
  • Give as a gift
at a glance
Current Rate: 0.50% through October 31, 2014 (fixed rate)
Minimum purchase: $25 for a $25 EE bond when purchased electronically via TreasuryDirect
Maximum Purchase
(per calendar year):
$10,000 in TreasuryDirect
Denominations: Electronic bonds via TreasuryDirect: purchase to the penny for $25 or more
Issue Method: Electronic issue in TreasuryDirect accounts

Rates & Terms

  • EE/E Bonds you purchased between May 1997 and April 30, 2005, earn a variable market-based rate of return.
  • Series EE Bonds issue dated May 2005 and after will earn a fixed rate of interest.
  • They are an accrual-type security, which means interest is added to the bond monthly and paid when you cash in the bond.
  • Paper bonds were sold at half the face value; i.e., you paid $25 for a $50 bond.
  • Electronic bonds purchased via TreasuryDirect are sold at face value; i.e., you pay $25 for a $25 bond.

Redemption Information

  • Minimum term of ownership: 1 year
  • Interest-earning period: 30 years
  • Early redemption penalties:
    • Before 5 years, forfeit 3 most recent months' interest
    • After 5 years, no penalty

Tax Considerations

  • Interest on savings bonds is subject to taxes imposed under the Internal Revenue Code of 1986. The bonds are exempt from taxation by any State or political subdivision of a State, except for estate or inheritance taxes.
  • Interest earnings are subject to Federal income tax.
  • Interest earnings may be excluded from Federal income tax when bonds are used to finance education (see education tax exclusions). Restrictions apply.

EE/E Bond-Related FAQs

  • How do market rates affect EE bonds?
  • Is my EE bond eligible for the Education Tax Exclusion?

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