Series EE savings bonds can earn interest for 30 years.
An EE savings bond is a low-risk savings product backed by the U.S. government. Bonds can be bought online through the U.S. Department of the Treasury or in person at banks or credit unions. Bonds are issued on paper and electronically and can earn interest for up to 30 years, according to the U.S. Department of the Treasury, and are guaranteed to double in value after 20 years. A paper bond is issued at half of face value and electronic bonds are issued at face value.
Instructions
1. Check the EE savings bond issue date. An EE bond must be at least 1 year old before it can be redeemed. The U.S. Department of the Treasury recommends checking when interest is added to a bond before redemption. Interest is added monthly to bonds issued after May 1997; interest is added every six months to bonds issued before May 1997.
2. Determine interest rates that affect the bond. Bonds issued after May 2005 earn interest at a fixed rate that can change every six months (on May 1 and Nov. 1). Older EE bonds, particularly those issued before May 1995, are based on a five-year treasury securities yield. The U.S. Department of the Treasury publishes a rate chart that can be accessed online.
3. Take possible penalties into consideration. Bonds that are less than five years from the original are subject to a penalty of three months' interest.
4. Add interest to the amount originally paid for the bond at issue date. Subtract penalties to determine the final value of the bond.
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