SAVINGS BONDS

The Bond Teller - An Online Resource for Employees of Financial Institutions

11/12/2002

November 2002 Interest Rates

Interest rates were announced November 1 effective for Series I and EE bonds purchased from November to the end of April 2003.

The earnings rate of I bonds is a combination of a fixed rate, which applies for the life of the bond, and the inflation rate. The 4.08% earnings rate for bonds bought from November 2002 through April 2002 applies for the first six months after issue. The earnings rate combines the 1.60 % fixed rate of return with the 2.46% annualized rate of inflation as measured by the consumer price index for all urban consumers (CPI-U).

The 3.25% rate on EE bonds is effective for new bonds issued from November 2002 through April 2003, and older EE bonds issued on or after May 1, 1997, that enter semiannual interest periods between those dates. The rate is 90% of the average 5-year Treasury securities yields for the preceding six months.

New rates for both series are announced each November 1 and May 1. Earnings rates and actual yields for older EE and I bonds can be obtained by sending a postcard asking for "Earnings Report" to Bureau of the Public Debt, 200 Third Street, Parkersburg, WV 26106-1328, or by going to www.treasurydirect.gov and clicking on the link "Bond Earnings Reports" under the heading "What Are Your Bonds Worth?"