Savings Bonds

The Secret To Earning 3.5% On EE Savings Bonds

Want to own savings bonds that will earn approximately 3.5% interest? It’s simple. Just buy and hold Series EE Savings Bonds for at least 20 years. Yes, that’s it. A $10,000 EE bond investment will be worth $20,000 in 20 years, guaranteed.

Be careful! If bonds are redeemed before they reach 20 years, you will only earn the guaranteed rate that was set at the time the bond was issued. Currently EE bonds issued between May 1 through October 31, 2018 offer a measly 0.10%* interest rate for the first 20 years.

The Secret To The High EE Interest Rate: “At a minimum, Treasury guarantees that a bond’s value will double after 20 years, its original maturity, and it will continue to earn the fixed rate set at the time of issue unless a new rate or rate structure is announced. If a bond does not double in value as the result of applying the fixed rate for 20 years, the Treasury will make a one-time adjustment at original maturity to make up the difference.” – U.S. Treasury Department.

Savings Bonds are NOT created equal. EE Bonds issued since May 2005 offer a fixed rate of interest. Older EE bonds have different rules, varying interest rates and will reach (initial and final) maturity at different times, depending on the bonds issue date.

To learn values and performance for your Series EE (and Series I) bonds, use a complimentary savings bond calculator, which also includes a printable, color-coded Savings Bond Inventory Report that indicating cash in values, total interest earnings, interest rates, maturity and taxation issues. A “what this means to you” explanation educates investors about each bonds values and performance.

5 Things To Know About The New EE Savings Bond

  1. Double in value adjustment (if held at least 20 years) applies to bonds issued May 2005 and after.
  2. Bonds must be held a minimum of one year.
  3. If redeemed prior to 5 years, a three-month interest penalty is applied.
  4. Maximum individual purchase amounts of series EE savings bonds is $10,000 per year.
  5. Bonds earn interest for 30 years (guaranteed rate for first 20 years – considered original maturity date). Interest rate can be adjusted for last 10 years until bond reaches its final maturity. Investors will be notified prior to any rate changes.

Why Isn’t Uncle Sam Promoting The EE Bond High Interest Rate?

Recently investors have been turning up their noses on savings bonds due to low interest rates. Think about it…a $10, 000 EE bond, held for 20 years will be worth $20,000, which is effectively earning 3.5% interest. This little known EE bond secret is not advertised or promoted by the government. Why? Given the recent historically low interest rates, earning essentially 3.5% is a really good return. The “one-time adjustment… to make up the difference” is THE difference why some EE bonds offer such a high return. They are a great, affordable ($25 minimum purchase), safe, secure, long-term investment, backed by the U.S government. I continuously scratch my head wondering why the Treasury is not promoting this excellent EE bond interest rate to investors? I believe it would dramatically improve savings bond sales.

*Interest rates for bonds bought between May 1, 2018, through October 31, 2018, is an annual rate of 0.10%.

About’s complimentary calculator provides cash in values, interest rates and a personalized, printable, color-coded, Savings Bond Inventory Report along with a “What This Means To You” explanation. For ongoing savings bond management & updated bond values via unique monthly emailed Savings Bond Statements, try a free trial of the Membership Advantages which includes a helpful Cash-In-Report.© and optional, informative Bond Tips.

By: Jackie Brahney, Marketing Director,

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