CandleFocus Glossary Editor
Series EE Bonds are interest-bearing U.S. government savings bonds that are practically risk-free and are designed to help Americans save for the future and protect their savings from possible financial downturns. EE Bonds are an easy, convenient and secure way to save money. They come with significant guarantees, including being backed by the full faith and credit of the U.S. government and offering a guaranteed return of at least double the original purchase amount over the initial 20-year term.
Series EE Bonds have a minimum investment requirement of $25 and investors can purchase up to $10,000 in EE Bonds each calendar year. They are sold at face value and earn interest, which is compounded semiannually and put into the bond’s balance. Interest is paid until the bond reaches its original maturity date, which can be up to 30 years from when it was purchased, or until the bond is cashed in. The interest rate for EE Bonds is typically set twice a year and is based on the yield of a 5-year Treasury security. The current rate is .50% for the period ending October 31, 2020.
The funds from EE Bonds can be used for a variety of needs, such as funding a college education, covering emergency expenses, or starting a business. EE Bonds may also be eligible for certain tax exemptions and deductions. For example, the earnings from EE Bonds may be exempt from state and local income taxes under certain circumstances.
Series EE Bonds are a great way to grow your savings while avoiding the risks associated with other forms of investing. They come with significant guarantees, including being backed by the full faith and credit of the U.S. government, and they offer a guaranteed return of at least double the original purchase amount over the initial 20-year term. Plus, by purchasing Series EE Bonds, you’ll be contributing to the fiscal well-being of the United States.
Overall, Series EE Bonds are a safe, secure and reliable way to save money while avoiding some of the risks typically associated with other forms of investing. With a minimum investment amount of just $25 and tax exemptions available, these bonds offer a great way to grow your savings for the future.
Series EE Bonds have a minimum investment requirement of $25 and investors can purchase up to $10,000 in EE Bonds each calendar year. They are sold at face value and earn interest, which is compounded semiannually and put into the bond’s balance. Interest is paid until the bond reaches its original maturity date, which can be up to 30 years from when it was purchased, or until the bond is cashed in. The interest rate for EE Bonds is typically set twice a year and is based on the yield of a 5-year Treasury security. The current rate is .50% for the period ending October 31, 2020.
The funds from EE Bonds can be used for a variety of needs, such as funding a college education, covering emergency expenses, or starting a business. EE Bonds may also be eligible for certain tax exemptions and deductions. For example, the earnings from EE Bonds may be exempt from state and local income taxes under certain circumstances.
Series EE Bonds are a great way to grow your savings while avoiding the risks associated with other forms of investing. They come with significant guarantees, including being backed by the full faith and credit of the U.S. government, and they offer a guaranteed return of at least double the original purchase amount over the initial 20-year term. Plus, by purchasing Series EE Bonds, you’ll be contributing to the fiscal well-being of the United States.
Overall, Series EE Bonds are a safe, secure and reliable way to save money while avoiding some of the risks typically associated with other forms of investing. With a minimum investment amount of just $25 and tax exemptions available, these bonds offer a great way to grow your savings for the future.