FOR RELEASE AT 10:00 AM
May 2, 2022
Effective today, Series EE savings bonds issued May 2022 through October 2022 will earn an annual fixed rate of .10% and Series I savings bonds will earn a composite rate of 9.62%, a portion of which is indexed to inflation every six months. The EE bond fixed rate applies to a bond’s 20-year original maturity. Bonds of both series have an interest-bearing life of 30 years.
Rates for savings bonds are set each May 1 and November 1. Interest accrues monthly and compounds semiannually. Bonds held less than five years are subject to a three-month interest penalty.
I Bond Composite Rate of 9.62% includes a Fixed Rate of 0.00%
The composite rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the 30-year life of the bond, and the semiannual inflation rate. The 9.62% composite rate for I bonds bought from May 2022 through October 2022 applies for the first six months after the issue date. The composite rate combines a 0.00% fixed rate of return with the 9.62% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The CPI-U increased from 274.31 in September 2021 to 287.504 in March 2022, a six-month change of 4.81%.
Series EE Bonds Issued May 2005 and Later
Series EE bonds issued from May 2022 through October 2022 earn today’s announced rate of .10%. All Series EE bonds issued since May 2005 earn a fixed rate in the first 20 years after issue. At 20 years, the bonds will be worth at least two times their purchase price. The bonds will continue to earn interest at their original fixed rate for an additional 10 years unless new terms and conditions are announced before the final 10-year period begins.
Series EE Bonds Issued from May 1997 through April 2005
Series EE bonds issued from May 1997 through April 2005 continue to earn market-based interest rates set at 90% of the average 5-year Treasury securities yields for the preceding six months. The new interest rate for these bonds, effective as the bonds enter semiannual interest periods from May 2022 through October 2022 is 1.60%. Market-based rates are updated each May 1 and November 1.
Series EE Bonds Issued Before May 1997
Series EE bonds issued before May 1997 earn various rates for semiannual earnings periods, depending on the issue dates. Please visit www.treasurydirect.gov for details and current values.
Savings Bonds Over 30 Years Have Stopped Earning Interest
All Series E savings bonds have matured and stopped earning interest. Series EE bonds issued from January 1980 through May 1992 are no longer earning interest. Series EE bonds issued from June 1992 through October 1992 will stop earning interest during the next six months.
More Information
Electronic Series EE and Series I savings bonds may be bought in TreasuryDirect®, a secure, web-based system operated by Treasury since 2002. Owners of paper savings bonds can continue to redeem them at some financial institutions. Paper Series EE and Series I Bonds can only be reissued in electronic form in TreasuryDirect.
Series I paper savings bonds remain available for purchase using part or all of a federal income tax refund. For more information on this feature, visit www.irs.gov.
To find more information on savings bonds and which ones are still earning interest, visit Fiscal Service’s website www.treasurydirect.gov. The Savings Bond Calculator tool, which is helpful for calculating redemption values, also can be found on the site. The website provides information and instructions for opening an on-line account to buy electronic savings bonds and Treasury marketable securities: bills, notes, bonds, Floating Rate Notes (FRNs), and Treasury Inflation Protected Securities (TIPS).
TreasuryDirect® is a registered mark of the U.S. Department of the Treasury.
FAQs
Effective today, Series EE savings bonds issued May 2022 through October 2022 will earn an annual fixed rate of . 10% and Series I savings bonds will earn a composite rate of 9.62%, a portion of which is indexed to inflation every six months.
Are Series EE savings bonds worth anything? ›
Series EE savings bonds are a low-risk way to save money. They earn interest regularly for 30 years (or until you cash them if you do that before 30 years). For EE bonds you buy now, we guarantee that the bond will double in value in 20 years, even if we have to add money at 20 years to make that happen.
How much interest do Series EE savings bonds earn? ›
Current Rate: 2.70%
(But if you cash before 5 years, you lose 3 months of interest.) (Note: Older EE bonds may be different from ones we sell today.)
What is the difference between a Series EE and a Series I savings bond? ›
EE Bond and I Bond Differences
The interest rate on EE bonds is fixed for at least the first 20 years, while I bonds offer rates that are adjusted twice a year to protect from inflation. EE bonds offer a guaranteed return that doubles your investment if held for 20 years. There is no guaranteed return with I bonds.
Are EE bonds a good investment? ›
Limited yield potential: EE bonds are a secure and low-risk investment, but they also come with lower returns than riskier investments such as stocks or mutual funds. Therefore, they may not be the best choice for those seeking higher returns and willing to accept higher risk.
How long does it take for a $100 EE savings bond to mature? ›
Key points. Series EE bonds mature in 20 years but earn interest for up to 30 years. The U.S. Treasury guarantees Series EE bonds will double in value in 20 years. You don't receive the interest on your Series EE bond until you cash it.
How much is a $50 Patriot bond worth after 20 years? ›
After 20 years, the Patriot Bond is guaranteed to be worth at least face value. So a $50 Patriot Bond, which was bought for $25, will be worth at least $50 after 20 years. It can continue to accrue interest for as many as 10 more years after that.
Should I cash out my Series EE bonds? ›
You can get your cash for an EE or I savings bond any time after you have owned it for 1 year. However, the longer you hold the bond, the more it earns for you (for up to 30 years for an EE or I bond). Also, if you cash in the bond in less than 5 years, you lose the last 3 months of interest.
Is now a good time to cash in savings bonds? ›
How long should I wait to cash in a savings bond? It's a good idea to hang on to your bond for as long as possible, ideally until it matures, so you can take full advantage of compound and accrued interest.
Do you pay taxes on I bonds? ›
The interest earned by purchasing and holding savings bonds is subject to federal tax at the time the bonds are redeemed. However, interest earned on savings bonds is not taxable at the state or local level.
EE bonds you buy now have a fixed interest rate that you know when you buy the bond. That rate remains the same for at least the first 20 years. It may change after that for the last 10 of its 30 years. We guarantee that the value of your new EE bond at 20 years will be double what you paid for it.
How to avoid paying taxes on savings bonds? ›
You can skip paying taxes on interest earned with Series EE and Series I savings bonds if you're using the money to pay for qualified higher education costs. That includes expenses you pay for yourself, your spouse or a qualified dependent. Only certain qualified higher education costs are covered, including: Tuition.
What is the downside of an I bond? ›
Cons of Buying I Bonds
I bonds are meant for longer-term investors. If you don't hold on to your I bond for a full year, you will not receive any interest. You must create an account at TreasuryDirect to buy I bonds; they cannot be purchased through your custodian, online investment account, or local bank.
Do EE bonds lose value after maturity? ›
As of July 2024, there were 96 million matured unredeemed savings bonds held by investors. If bonds are held past their maturity date, the bonds can lose value due to inflation. To understand how this value is lost, see the illustration below. Imagine you bought a series EE bond 30 years ago for $500.
How much tax do you pay on EE bonds? ›
The interest on EE bonds isn't taxed as it accrues unless the owner elects to have it taxed annually. If an election is made, all previously accrued but untaxed interest is also reported in the election year. In most cases, this election isn't made so bond holders receive the benefits of tax deferral.
How long should I hold EE savings bonds? ›
Maturity dates for Series EE bonds
Although they technically mature after 20 years, these bonds actually don't expire for 30 years. You'll keep earning interest for an extra decade. As long as you cash in your bond at the maturity date, you can guarantee your investment will double.
Should I cash in my EE savings bonds? ›
Depending on the interest rate of your bond and your own financial needs, it's generally beneficial to wait until full maturity to redeem them.
What happens to EE bonds after 30 years? ›
EE bonds earn interest until the first of these events: You cash in the bond or it reaches 30 years old. Therefore, many of these bonds have stopped earning interest. If you moved your EE bond into a TreasuryDirect account, we pay you for the bond as soon as it reaches 30 years and stops earning interest.
How to cash in old series E bonds? ›
Because Series E savings bonds are in paper format, the easiest way to cash them in is to bring them to your financial institution. Your bank or credit union can use information about when the bonds were issued and the interest rate at the time to calculate the value and provide you with the money you're entitled to.
How much tax do I pay on Series EE bonds? ›
The interest on EE bonds isn't taxed as it accrues unless the owner elects to have it taxed annually. If an election is made, all previously accrued but untaxed interest is also reported in the election year. In most cases, this election isn't made so bond holders receive the benefits of tax deferral.
