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 ?
There is also an education-related exclusion of savings bond interest for Series EE or I Bonds purchased by an individual over the age of 24.
I couldn't get that out of my mind, so before our son's first birthday, we started buying Series EE U.
Arak and Rosenstein (2004) compared Series EE bond returns to six-month certificates of deposit (CDs), Treasury Bills and intermediate-term Government bonds over the period 1954 to 2000.
series EE savings bonds (interest is deferred until the bond is cashed in), and vacant Land expected to appreciate.
And he'll be able to take advantage of it in the future,'' said Tuszynski, 38, who plans on purchasing a Series EE bond for $25, which the U.
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.
The series EE Patriot Bond came to the Division Street thrift store in a small box shaped like a book that also contained some silver coins.
These "Patriot Bonds," it turned out, were just regular Series EE savings bonds with a new label, and what revenue they raised was not even earmarked for the war on terrorism.
Note: Series EE and I bonds can be purchased in denominations of $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000.
Treasury's savings bond offerings today consist of series EE bonds, the interest earnings on which accrue until the bond matures or is redeemed, and series HH bonds, which are obtained in exchange for series E or series EE bonds and pay interest twice per year, via ACH, to the owner's designated depository institution.
The fiscal 2012 series EE bonds are scheduled for negotiated sale on March 6.