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Series EE Bond

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Series EE bond

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.


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You can cash in a Series EE Bond at anytime after 12 months of purchase date.
With both the Series I Bonds, which are sold at face value, and the Series EE Bonds, which are sold at half their face value, you can earn interest for up to 30 years.
A Series I Bond is sold at face value, but typically earns slightly higher interest than the Series EE Bonds.
 
 
 
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