A complete overview of EE Series Bonds

(c) Copyright 2006 by Harold Pennington

The Liquidity of Series EE Savings bonds

Series EE Savings bonds must be held a minimum of one year, which is far better than many other government-backed bonds. You can redeem them anytime after that period.

Who is eligible to buy EE Series Bonds?

EE Series savings bonds are like any other government-backed bond in that they can be owned by the same investors. This is strictly:

• Individuals (at any age!)
• Corporations
• Associations
• Organizations (public or private)
• Fiduciaries

However, at this time, only Individuals can open a Treasurydirect account and purchase savings bonds online.

It might also be important to note that individuals who can own any kind of US Savings Bond must have a Social Security Number, and be either a Resident of the US or outlying territory, a Citizen of the US living abroad, or a Civilian employee of the US, regardless of residence.

EE Series Bond Rates and Terms

Series EE Savings Bonds issued during May 2005 and afterwards earn a fixed rate of interest decided by the FED, and can be checked in any newspaper finance section daily. Before May 2005, their interest wasn't fixed, but tied to a variable rate that wasn't very popular with investors, so that's the main reason you've only heard of them lately.

Interest rates for all new bond issues are adjusted each May 1st and November 1st. So if you're shopping bonds in late April or October, pay really close attention to the trend in interest rates before purchasing!

Also, Series EE Bonds compound in interest semiannually. This means that your interest can work on top of previous interest, giving you a better return each year.

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