Series EE Savings Bond
What Is a Series EE U.S. Savings Bond?
A Series EE U.S. savings bond is a government savings bond issued by the U.S. Treasury that earns a fixed interest rate over time. These bonds are designed as long-term savings tools for individual investors.
Series EE bonds are guaranteed to double in value if held for 20 years.
Why It Matters
Series EE bonds offer a safe way to save money while earning interest backed by the U.S. government. Because they are low risk and easy to purchase, they are often used for long-term goals such as education savings.
They may also offer certain tax advantages when used for qualified education expenses.
How Series EE Bonds Work
Series EE bonds earn interest monthly and compound over time.
Key features include:
- fixed interest rate
- electronic purchase through TreasuryDirect
- 20-year guaranteed value doubling
Bonds can continue earning interest for up to 30 years.
Example
An investor purchases a $500 Series EE bond that grows steadily in value over time.
Series EE Bond vs Series I Bond
- Series EE bonds earn a fixed interest rate.
- Series I bonds include an inflation-adjusted interest component.
FAQs About Series EE Bonds
How long should EE bonds be held?
They reach guaranteed value after 20 years.
Can EE bonds be redeemed early?
Yes, but typically not within the first year.
Do EE bonds pay regular interest payments?
No. Interest accumulates until redemption.
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