The Fiscal Service Announces New Savings Bonds Rates, Series I to Earn 1.76%, Series EE to Earn 0.20%
FOR RELEASE AT 10:00 AM
November 1, 2012
WASHINGTON -- The Bureau of the Fiscal Service today announced earnings rates for Series I Savings Bonds and Series EE Savings Bonds, issued from November 2012 through April 2013. 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 of 1.76% includes Fixed Rate of 0.00%
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 1.76% earnings rate for I bonds bought from November 2012 through April 2013 also will apply for the succeeding six months after the issue date. The earnings rate combines a 0.00% fixed rate of return with the 1.76% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The CPI-U increased from 229.392 in March 2012 to 231.407 in September 2012, a six-month increase of 0.88%.
- Series EE Bonds Issued May 2005 and After
Series EE bonds issued from November 2012 through April 2013 will earn today’s announced rate of 0.20%. (Series EE bonds issued since May 2005 are earning interest at a fixed rate, depending on the rate set when the bond was issued).
- 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 2012 through April 2013, is 0.63%. Market-based rates are announced effective each May 1 and November 1.
- Series EE Bonds Issued Before May 1997
Series EE bonds issued before May 1997 earn various rates for semiannual earnings periods, depending on dates of issue. Please visit Public Debt's website www.treasurydirect.gov for more information.
- Matured Series EE/E Savings Bonds
All Series E savings bonds stopped earning interest as of June 2010. Additionally, Series EE bonds issued from January 1980 through November 1982 are no longer earning interest, and those issued from December 1982 through April 1983 will stop earning interest during the next six months.
Treasury ended sales of paper savings bonds through financial institutions as of January 1, 2012. Electronic savings bonds in Series EE and I will remain available for purchase in TreasuryDirect®, a secure, web-based system operated by Public Debt where investors have been purchasing savings bonds, available 24/7, since 2002. Those currently holding paper savings bonds can continue to redeem them at financial institutions. Bonds, which have not matured, but were lost, stolen or destroyed, can be reissued in paper or electronic form. Series I paper savings bonds remain available for purchase using part or all of one's tax refund. For more information on this feature, visit www.irs.gov.
To find more information on savings bonds and which ones are still earning interest, visit Public Debt’s website www.treasurydirect.gov. The Savings Bond Calculator and Savings Bond Wizard® tools, which are helpful for calculating redemption values, also can be found on the site. The website provides information and instructions for opening an on-line account to purchase electronic savings bonds and Treasury marketable securities: bills, notes, bonds and TIPS (Treasury Inflation Protected Securities).