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New Rate Structure For Series EE Bonds

Series EE Savings Bonds have always been a reliable investment, and they're about to become even more reliable. Instead of waiting to find out what rate your EE bonds will earn every six months, you'll now have the advantage of knowing what they're worth at all times, thanks to the new fixed rate for this series.

On April 4, Treasury announced that EE bonds issued May 2005 and later earn fixed interest rates. The fixed rate for bonds purchased May 2005 through October 2005 is 3.50%. EE bonds earn interest for 30 years; the fixed rate applies during the first 20 years and will automatically be extended for 10 more years unless Treasury announces different terms for the final 10-year period. Rates for new issues will be announced each May 1 and November 1.

You can cash EE bonds any time after they're one year old, but there's a three-month interest penalty for cashing them less than five years from their issue date. Treasury guarantees that an EE bond issued May 2005 or later will at least double in value at its 20-year original maturity. If the fixed rate fails to double a bond's value by 20 years, Treasury will make a one-time adjustment to make up the difference. Check out our Frequently Asked Questions (FAQs) for more information about the EE bond fixed rate.

EE bonds are available in electronic and paper form. Electronic bonds can be purchased and held directly with Treasury in a TreasuryDirect account. Paper EE bonds can be purchased through a financial institution, or using our online mail order form.