US Savings Bonds

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A complete overview of EE Series Bonds, Part III

(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.

The maturity dates for Savings Bonds vary from 20 years to 40 years depending on the types of US Savings Bonds. Since different US Savings Bonds are issued by the United States government at different times, maturity dates for US Savings Bonds vary according to the issue dates.

Once the maturity dates of US Savings Bonds are reached, the United States Savings Bonds will not accumulate interests and owners of any U.S. Savings Bonds that have reached their maturity dates may want to cash out on the Savings Bonds.

Maturity dates for US Savings Bonds

Series E Savings Bonds and Series EE Savings Bonds have maturity dates 30 years after the issue dates. The maturity dates for Series E savings bonds issued between 5/41 and 11/65, however, are 40 years from the dates of issue. The maturity dates for Series I Savings Bonds are also 30 years from the dates of issue.

When will I have to pay tax on US Savings Bonds? – US Savings Bonds Taxation

Once the US Savings Bonds have reached their maturity dates, the savings bonds will be taxable. You will owe taxes on the US Savings Bonds interests even though you are not cashing them out yet. Click on the link at the bottom of the page to view all US Savings Bonds Maturity dates.

Once a Series EE US Savings Bonds Maturity date has been reached, is there anything an investor can do to continue to defer the interest that is due?

No. The last day to rollover US Series EE Savings Bonds or US Series E savings bonds into US Series HH savings bonds was August 31, 2004.

After that date all tax deferred US Series EE Savings Bonds or US Series E Savings Bonds Interest is taxable in the year of the US Savings Bonds Maturity, regardless of when the savings bonds are actually presented for payment.

• US Savings Bonds Maturity