Series I Savings Bonds to Earn 5.64%, Series EE to Earn 1.30% Fixed Rate, When Bought from November 2008 Through April 2009


November 3, 2008

The Bureau of the Public Debt today announced an earnings rate of 5.64% for Series I Savings Bonds, and a fixed rate of 1.30% for Series EE bonds, issued from November 2008 through April 2009. Earnings rates for I bonds and fixed rates for EE bonds are set each May 1 and November 1. Interest accrues monthly and compounds semiannually. Bonds held less than five years are subject to a three-month interest penalty. Both series have an interest-bearing life of 30 years; the EE bond fixed rate applies to a bond’s 20-year original maturity.

I Bond Earnings Rate 5.64%, Fixed Rate 0.70%

The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate. The 5.64% earnings rate for I bonds bought from November 2008 through April 2009 will apply for their first six months after issue. The earnings rate combines a 0.70% fixed rate of return with the 4.92% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The fixed rate applies for the 30-year life of I bonds purchased during this six-month period. The CPI-U increased from 213.528 to 218.783 from March through September 2008, a six-month increase of 2.46%.

Series EE Bonds Issued from May 1997 Through April 2005

Series EE bonds issued from May 1997 through April 2005 continue to earn market-based interest rates set at 90% of the average 5-year Treasury securities yields for the preceding six months. The new interest rate for these bonds, effective as the bonds enter semiannual interest periods from November 2008 through April 2009, is 2.80%. Market-based rates are announced effective each May 1 and November 1. A 3-month interest penalty applies to bonds redeemed before being held five years.

Series EE Bonds Issued Before May 1997

Series EE bonds issued before May 1997 earn various rates for semiannual earnings periods beginning between November 2008 and April 2009, depending on dates of issue.

Matured Series E Savings Bonds And Savings Notes

Series E savings bonds continue to reach final maturity and stop earning interest. Bonds issued from May 1941 through November 1977 no longer earn interest. All U.S. Savings Notes (Freedom Shares), which were issued from May 1967 through October 1970, have also stopped earning interest. Series E Bonds with issue dates from December 1977 through April 1978 will reach final maturity during the next six months.

More Information

Earnings rates and actual yields for Series I and EE bonds can be found in Earnings Reports for the respective series on Public Debt's website, The website also contains information and instructions for opening an on-line account to purchase electronic I and EE bonds, as well as Treasury marketable securities. Account holders can purchase, manage, and redeem electronic savings bonds over the Internet 24 hours a day, seven days a week.

Detailed information about all Treasury securities, including savings bonds and marketable Treasury bills, notes, bonds and TIPS (Treasury Inflation Protected Securities), is available through