It’s likely you have no idea the interest rates your savings bonds are earning. Here’s why.
There is a lot of confusion regarding savings bond interest rates, especially regarding older, very popular, paper Series EE Savings Bonds.
Unless you own EE bonds issued since May, 2005, your savings bonds interest rates will likely vary. Since savings bonds were issued, the U.S. Treasury Department changed interest rates and the applicable rules & regulations to attempt to make savings bonds an attractive investment.
U.S. financial market conditions – which are usually tied to the Treasury Securities rates – were often a main factor in determining interest rates for savings bonds. However, the government created different formulas, which are confusing to the average investor. Even Einstein would likely scratch his head trying to remember them.
Interest rates FOR NEW BOND PURCHASES are announced every May 1 and November 1. These interest rates do NOT necessarily apply to previously purchased bonds.
Savings Bonds interest rates fall into four categories based on when the bond was issued:
1. Before May, 1995
2. May, 1995 through April, 1997
3. April, 1997 through April, 2005
4. After May 1, 2005
Sounds Confusing? A complimentary savings bond calculator will simplify the process by providing the current interest rate a bond is earning – along with current cash in values, maturity and (potential) tax implications, along with a “what this means to you” explanation. The expression “tell me the time, don’t tell me how you built the watch,”applies here.
SavingsBonds.com’s complimentary calculator provides current values, interest rates, financial, timing and tax information via a color-coded, Savings Bond Inventory Report including a “what this means to you” explanation. For bond management services, updated values along with important maturity and tax alerts, via monthly e-Bond Statements, sign up for a free 14 day trial of SavingsBonds.com’s unique VIP Membership.