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EE Bonds Fixed Rate FAQs

This article tries to answer the most commonly asked questions about one of the most common type of bond issued by the U.S. Treasury:

Which Series EE Bonds are affected by the new way of setting rates?

How often will the fixed rates change for new issues?

How will the fixed rate on EE bonds be determined?

How do you purchase EE bonds, and how long must they be held?

When will new EE bonds reach original maturity?

opening a TreasuryDirect account. Purchase prices for electronic securities start at $25, and they can be purchased in any amount above that up to $30,000 per person, per calendar year. Secondly, EE bonds are also available in paper form in denominations ranging from $50 to $10,000, with issue prices set at one-half their face value (for example, a $100 EE bond costs $50). Paper bonds can be purchased through most financial institutions and through payroll savings plans offered by thousands of employers nationwide. No matter the form in which they are issued, bonds must be held at least one year from their issue dates. A three-month interest penalty applies to bonds not held at least five years.

When will new EE bonds reach original maturity?

EE Bonds issued on and after May 1, 2005, will reach original maturity at 20 years. These bonds also are guaranteed to double in value from their issue price no later than 20 years after their issue dates. This is the bonds' original maturity. 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. During the 10-year extended maturity period that follows original maturity, bonds will earn interest at the fixed rate set at issue unless a new rate or new terms and conditions are announced for the extension period.

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