United states treasury savings bonds series ee

The series ee savings bonds pay interest equal to 90 percent of the average 5year treasury securities yield for the preceding six months. Savings bonds are currently offered in two forms, series ee and series i bonds. Series ee bonds issued on or after may 1, 1997 and prior to may 1, 2005 will earn interest based on fiveyear treasury security. Ee savings bonds as an investment all you need to know. Bonds traditionally have been purchased through financial institutions and employersponsored payroll savings plans and redeemed through financial institutions, but can also be purchased directly from the united states. There is a more advanced method of using series ee savings bonds for education expenses. If the owner of series ee bonds decides to extend the maturity date, series ee bonds continue to. Now you may only obtain series ee bonds by purchasing them electronically at treasurydirect. United states savings bonds series e before 1980 and series ee after, including patriot bonds see below are issued on a noninterest bearing discount basis. You can make the adjustment while the bonds are still earning interest. The owner of the bond is paid the face value of the bond.

Intro to series ee savings bonds investing the balance. Anyone with a social security number, including minors, or an organization with a tax identification number, such as a. There are two types of savings bonds offered by the treasury, series ee and series i. Series ee bonds issued may 2005 and after earn a fixed rate of interest. Find out what your savings bonds are worth with our online calculator. To cash your bonds through treasury retail securities services, follow these steps. The series ee bond is a nonmarketable, interestbearing u. Series ee savings bonds can be bought directly from the government at the treasury direct website or via payroll savings deductions. The us treasury produces two types of savings bonds.

The only way to buy ee bonds is to buy them in electronic form in treasurydirect. Features include current interest rate, next accrual date, final maturity date, and. Treasury series ee bonds and i bonds to help clients make savings bonds a part of their investment strategy. Dear alice, wow, you really cleaned up at the 1986 awards assembly. Money bonds bonds types government bonds united states savings bonds. Savings bonds are an appreciationtype or accrualtype savings security. Authorization for purchase and request for change united states series ee savings bonds or united states series i inflationindexed savings bonds, as prescribed in paragraph 230601 of this chapter, or the dfas mypay system, as prescribed in paragraph 230602 of this chapter, to buy both series ee and i. Series i savings bonds are an excellent option for new investors because they are lowrisk. Savings bonds are exempt from taxation by any state or political subdivision of a state, except for. The calculator will price series ee, series e, and series i savings bonds, and savings notes. Learn about series ee savings bonds, issued by the u. Series ee bonds, sometimes called patriot bonds after 2001, differ from series i because they are guaranteed to double in value after 20 years. United states savings bonds are nonmarketable treasury securities which have been sold continuously since march 1935. Introduction to savings bonds united states department.

Treasury bonds have a 30year term and pay a fixed rate of interest on a sixmonth basis until they mature. These are just a few of the popular topics found at the treasurydirect. Paper series ee bonds are purchased for half their face value. Series i bonds allow you to turn your cash into an investment thats safe from inflation while. Series ee bonds are purchased at a discount of face value. Savings bond basics two general types of bonds are currently sold by the savings bond division of the department of treasury. Department of the treasury makes it relatively simple to change the name on your series ee bonds when its necessary. They can be purchased at banks, through payroll savings plans or. First, determine if any of your eeseries bonds are below 17 years old, or 20 if issued after may 2003. Eeseries bonds are guaranteed to be worth at least their face value after 1720 years. The series ee bonds are the fixedinterest savings bonds now being issued. I used the savings bond wizard available as a download on the treasurydirect.

With that in mind, here are five things you should know about the tax treatment of series ee bonds. Series i bond is a nonmarketable, interestbearing u. Since savings bonds have a few unique advantages, however, theres a bit more to consider. Bonds are a savings tool used by millions of united states citizens in part because of favorable tax advantages. Series ee savings bonds and series i savings bonds will continue earning interest for up to 30 years, while series hh savings bonds earn interest for 20 years. Series ee savings bonds are lowrisk savings products that pay interest until they reach. The redemption tables in this publication allow you to find the values and interest earned for series ee savings bonds, series e savings bonds, series i savings bonds, and savings notes issued from 1941 to the present when cashed during different time periods. However, interest earned on savings bonds is not taxable at the state or local level. What you must know about taxation of ee series bonds ed. How long does it take for series ee savings bonds to reach. This means that the rates on ee bonds are based on rates set by participants in the large government bond trading market. Series ee bonds pay a fixed rate but are guaranteed to pay at least double the purchase price when they reach initial maturity at 20 years. The interest is issued electronically to your designated account. The united states treasury department used to sell series ee bonds at half the face value with the promise that the bond would eventually reach face value.

The interest on an outstanding bond ceases to accrue 30 years after its issue date. How to change ownership of ee savings bonds finance zacks. Ee bonds earn interest for 30 years if you dont cash the bonds before they mature. This differs from earlier issues, which carried variable rates. How to cash in series ee savings bonds depositaccounts. Savings bonds calculator series ee savings bonds faq. This type of savings bond is supported by the united states treasury and using irs form 8888. Series ee savings bonds issued in the 1980s and early 1990s have an original maturity of 20 years, and an extended maturity of 10 years, for a total of 30 years until the final maturity of the bonds. This approach is detailed by the united states treasury on the treasurydirect site and it involves putting the series ee savings bonds in the name of the child with the parents listed as the beneficiary not coowner. This article will help you understand how to invest in us series ee savings bonds, how exactly does it. Ee savings bonds one of the popular products of the united states treasury department.

Information dealing with the purchase, redemption, replacement, forms, and valuation of treasury savings bonds and securities is located on the treasurydirect. There are a couple of different types of united states savings bonds available for purchase including treasury bonds, i savings bonds, and eee savings bonds. Savings bonds have been one of the most popular investments in the united states since 1935. If your paper bond was lost, stolen, or destroyed, you can request that the treasury department. Ee bonds purchased between may 1997 and april 30, 2005, earn a variable rate of interest. The agency provides various forms for this purpose on its treasury direct website, and each handles a specific type of name change request. In general, paper savings bonds are no longer issued. You can call the treasury retail securities site at 8005532663 to check on the status of your bond issuance. Savings bonds are exempt from taxation by any state or political subdivision of a state, except.

Interest accrues at stated intervals and becomes part of the redemption value paid when the bond is cashed or finally matures. The interest earned by purchasing and holding savings bonds is subject to federal tax at the time the bonds are redeemed. There is no state or local income tax on the interest. Potential returns currently, savings bonds provide a tiny return series ee bonds issued from nov. Savings bonds, specifically eee series bonds, were created as a longterm investment allowing individuals to save in a reliable, lowrisk fashion. After entering your password, you will be directed to your treasurydirect account summary. Collectible united states savings and treasury bonds. This screen contains a brief summary of your securities holdings, and a series of menu options along the top of the screen. Series ee savings bonds are lowrisk savings products that pay interest until they. United states savings bonds planning consideratinos. Individual cashing redeeming ee and e savings bonds. To continue changing the beneficiary on your ee bonds, select my account at the top.

Series ee savings bonds have a total maturity period of 30 years from the issue date, consisting of an original maturity period and one or two periods of extended maturity, which vary depending on the issue date of the bond. As a debt obligation of the united states federal government, series ee bond interest like other u. Federal register united states savings bonds, series ee. Many individuals own united states savings bonds series e, ee, h, hh or i bonds tucked away, perhaps, in a bureau drawer or safe deposit box.

This action supports treasurys goal to increase the number of electronic transactions. Series ee bonds are savings certificates issued by the united states treasury. Value of united states ee savings bonds pocketsense. When the bond matures, the owner receives 100 percent of the face value. All series ee bonds issued on or after may 1, 2005 will earn fixed rates of interest for at least 20 years. Savings bonds were introduced as a means of encouraging broad public participation in government financing by making treasury securities available in small denominations specially tailored to the small investor.

If you hold an electronic series ee or series i bond in treasurydirect, you can find the. How to cash in savings bonds its easier than you think. You may incur an interest penalty if you redeem the investment during the first five years. Program rules, interest rates, maturity dates, and other information related to savings bonds. Treasury provides savings certificates in the form of series ee investments.