Series EE savings bond

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Series EE Savings Bond

In the United States, a savings bond, exempt from state and local taxes, with a fixed interest rate. The interest is adjusted every six months and is equal to 90% of the average 5-year Treasury security yield over the six months preceding the calculation. These bonds are sold at half of face value and pay par upon maturity, which is 30 years after purchase. They must be held for at least one year, and United States Treasury guarantees that it will double in value after 20 years. They are non-transferable and must either be held or redeemed. When used to pay for college education, they are exempt from federal taxes. Series EE bonds are the successors to Series E bonds, better known as war bonds.

Series EE savings bond

A U.S. Treasury obligation that pays a variable interest rate and is sold to investors in denominations as low as $50 at a 50% discount from face value. Series EE bonds earn interest at 90% of the average yield on five-year Treasury securities for the previous six months. Bonds may be redeemed after six months early, but a three-month interest penalty is assessed for redemptions during the first five years. Federal income taxes on interest earned may be paid each year or may be deferred until the savings bond is redeemed. Interest earned on savings bonds is exempt from state and local taxation. See also Patriot Bond.
References in periodicals archive ?
Steven makes an excellent point about the very underused EE bonds, and his Letter serves as a useful reminder that advisors should consider EE bonds for clients seeking higher-yield safe investments.
Series EE bonds issued from May 2017 through October 2017 earn todays announced rate of 0.
To get MAGI, start with AGI and then add any deductions or exclusions you report for a regular contribution to a traditional IRA, student loan interest, qualified tuition and related expenses, foreign earned income, foreign housing, interest income from series EE bonds, employer-paid adoption expenses and domestic production activities.
We cashed out most of the Series EE bonds we had saved during the previous seven years--a thrilling $10,000
EE bonds issued on and after May 1, 2005, earn a fixed rate of interest for the 30-year life of the bond (interest on EE bonds issued prior to that date is not fixed, see table on page 119).
The most recently announced fixed rate will apply to Series EE bonds purchased during the six months following the announcement (or for any other period of time announced by the Secretary).
2005, Series EE bonds issued on or after May 1, 2005, earn a fixed rate
They found that Series EE bonds yielded higher returns than T-bills with less volatility.
The bonds can be EE bonds or I bonds, issued after December 31, 1989.
Savings Bonds are no longer being issued, and that Series EE savings bonds issued on or after May 1, 2005, earn fixed interest rates, clients who invest in EE bonds should understand that the new rate policy increases interest rate risk.
Treasury series EE bonds and I bonds to help clients make savings bonds a part of their investment strategy.