Series ee savings bonds definition

Savings bonds are currently offered in two forms, series ee and series i bonds. Savings bond dictionary definition savings bond defined. When you redeem the bond, you get back the face value plus all accumulated interest. The series ee savings bond has a fixed interest rate of return. Potential returns currently, savings bonds provide a tiny return series ee bonds issued from nov.

Investment choices stocks and bonds flashcards quizlet. I deposited my seriesee bonds to pay student loans. Learn about series ee savings bonds, issued by the u. Savings bond definition of savings bond by merriamwebster. Series ee bonds dated may 2005 and after earn a fixed rate of interest. Series ee savings bonds issued in the 1980s and early 1990s have an original maturity of 20 years, and an extended maturity of 10 years, for a total of 30 years until the final maturity of the. Theyre purchased at a discount to their face value, and accrue interest monthly.

Series ee savings bonds financial definition of series ee. A registered, noncallable, nontransferable bond issued by the u. If you hold an electronic series ee or series i bond in treasurydirect, you can find the bond s current value there. There are several types of bonds currently in circulation, with the series ee bonds. Savings bonds calculator series ee savings bonds faq. Ee savings bonds what is a ee savings bonds nonmarketable us government zero coupon bonds which must be purchased from the government and redeemed to the government. Features include current interest rate, next accrual date, final maturity date, and yeartodate interest earned. Series ee bonds pay a fixed rate but are guaranteed to pay at least double the purchase price when they reach. Unlike series ee and i bonds, they did not increase in value, but paid. Savings bonds typically have an investment period, or maturity, of 30 years. They were initially issued in 1980 to replace the series e bonds and have undergone many changes. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Information about form 8815, exclusion of interest from series ee and i u.

Ee bonds we sell today earn the same rate of interest a fixed rate for up to 30 years. Series ee savings bond in the united states, a savings bond, exempt from state and local taxes, with a fixed interest rate. Series ee bonds are the most common type of savings bond. Treasury announces the rate for new bonds each may 1 and november 1.

Interest is added to an ee bond monthly and paid when you cash the bond. These bonds are sold at half of face value and pay par upon maturity, which. Savings bond definition is a nontransferable registered u. Treasury reports interest earnings on series ee savings bonds is different than the reported returns from most interestbearing investments. While these bonds may not always provide much in the way of growth the. Electronic series ee savings bonds, purchased via treasurydirect, are sold at face value. Cds have maturities ranging from a few months to 5 years and longer. Series ee bonds issued may 2005 and after earn a fixed rate of interest. You can purchase them at banks, through payroll savings plans and directly from the treasury at the treasury direct. Intro to series ee savings bonds investing the balance. The series ee bond is a nonmarketable, interestbearing u. Ee bonds bought from may 1997 through april 2005 earn a rate of interest that changes every six. Series ee savings bond financial definition of series ee. Government, and backed by its full faith and credit.

When you buy the bond, you know what rate it will earn for at least the first 20 years. All e bonds and some ee bonds have stopped earning interest and should be cashed. Series ee bonds are government savings bonds issued by the u. Series ee series i savings bond redemption value tables. All of the original series e bonds have already reached final maturity, even though they were extended for 40 years, and series ee bonds issued before june, 1984 have. A savings bond issued at a discount from par par with a fixed rate of interest, set at the time of purchase.

I know since it was used for student loans, it should be tax exempt. Unlike ee bonds, series i savings bonds are meant to be a longerterm investment. The series ee bond is a nonmarketable, interestbearing savings bond issued by the u. Additionally, the treasury formerly offered series hh bonds, which were. Bonds purchased between may 1997 and april 30, 2005, earn a variable marketbased rate of return. Individual cashing redeeming ee and e savings bonds. Savings bonds are nonmarketable securities when you purchase them, theyre registered to you and you cant sell them to another investor. Series ee bonds are a type of zerocoupon bond, which means you never. Yes, the interest is exempt if it was to pay higher education expenses, but the definition. Savings bonds issued after 1989, including recent updates, related forms, and instructions on how to file. The state and local tax exemption, as well as a federal exemption for tuition payment, make ee bonds especially advantageous for. Series ee savings bonds offering consumers an easy way to get 90 percent of the prevailing tbond interest rate at far lower face values than typical institutional investments. Series ee savings bonds are lowrisk savings products that pay interest until they reach 30 years or you cash them, whichever comes first. All interest on the bonds is calculated semiannually, but paid at.

The rates and terms for an ee bond depend largely on when the bond was issued. Please select the word from the list that best fits the definition. The interest is adjusted every six months and is equal to 90% of the. The us treasury produces two types of savings bonds. The interest is adjusted every six months and is equal to 90% of the average 5year treasury security yield over the six months preceding the calculation. Savings bonds are zerocoupon bonds in that they earn interest monthly but do not pay that interest until they mature or are redeemed. How long does it take for series ee bonds to mature. Treasury bonds, you may have noticed some series ee savings bonds mature on different dates. Savings bonds differ from other treasury securities in. Savings bonds are an appreciationtype or accrualtype savings security. The calculator will price series ee, series e, and series i savings bonds, and savings notes. Interest rates and terms for series ee savings bonds. If you subscribe to an employersponsored program, the minimum amount you pay each week can be even lower. What you must know about taxation of ee series bonds ed.