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EE Bonds Issued May 1995 through April 2005

EE Bonds Issued May 1995 through April 1997

This information applies only to Series EE Bonds issued May 1995 through April 1997.

Rates

Series EE Savings Bonds issued May 1, 1995 through April 30, 1997 earn interest based on market yields for U.S. Treasury securities. Each May 1 and November 1 these bonds earned two savings bond rates: a short-term rate and a long-term rate. The details are outlined below. See Market-Based Savings Bond Rates for the actual rates.

Short-Term Rate

  • Series EE bonds earn the short-term rates for the first five years.
  • The short-term rates were 85% of the 3-month averages of 6-month U.S. Treasury Security yields.

Long-Term Rate

  • Applied to EE bonds from five years through 17 years.
  • EE Bonds will continue to earn interest from 17 years through 30 years at the rates in effect at that time.
  • Each long-term rate is 85% of the 6-month average of five-year U.S. Treasury security yields.

A new rate is determined and becomes effective each May 1 and November 1. The May 1 rate reflects market yields during the preceding November through April and the November 1 rate reflects market yields during the preceding May through October.

Interest Accrual

  • Interest will be added to the value of your bonds every six months.
  • Bonds will increase in value six months after purchase and every six months after that.
  • When you redeem your bonds, you'll get the value of the bonds as of the last date interest was added.

Note: If you redeem your bonds between the dates on which they accrue interest, you will not receive interest for the partial period.

EE Bonds Issued May 1997 through April 2005

This information applies only to EE Bonds issued May 1997 through April 2005.

Rates

EE Bonds purchased May 1997 through April 2005 earn interest based on 5-year U.S. Treasury security yields right from the start. The rate for EE Bonds is 90% of the average yields on 5-year securities for the preceding six months.

Rates announced each May and November are the annual rates that apply to bonds for those 6-month earning periods.

Liquidity

You may redeem EE Bonds anytime after 12 months.

Interest Accrual

  • Interest will be added to the value of your bonds every month rather than every 6 months.
  • Interest is compounded semiannually.
  • EE Bonds earn interest for 30 years.

Interest Penalty

A 3-month interest penalty will apply to bonds cashed before 5 years. This rewards longer-term bond holders who then benefit from higher 5-year rates over the full life of the bond. Here's how it works: If you cash a bond before it's five years old, you give up the last 3 months worth of interest. For example, if you buy a bond and redeem it 24 months later, you'll get back your original investment and 21 months of interest. The value of the bond would be based on the announced rates applied over the initial 21-month period.