What is EE Savings Bond?

The EE Savings Bonds are dependable, low-risk government-backed savings products that one can use to finance education, supplemental retirement income birthday and graduation gifts together with other special events.

Series EE Savings Bonds were introduced on July 1, 1980, to replace Series E Savings Bonds, which were withdrawn from the US sale.

The Series EE Savings Bond rates are set every May 1st and November 1st, with each new rate effective for all bonds issued in the six months following the adjustment.

There are electronic EE Savings Bonds and paper Series EE Bonds.

An electronic EE Savings Bond can be purchased at minimum of cost of $25 and maximum purchase of electronic EE Savings Bonds annually (per calendar year) is $10,000.

EE Savings Bond Maturity Periods

The Treasury Department warranties that new issues of Series EE Savings Bonds will double in value by 20 years from the issue date. This is called the original maturity date.

Rules for Cashing in a Series EE Savings Bond

1)EE Savings Bonds must be at least 1 year old before they are eligible for cash-in.

2)There is a 3 month penalty for cashing in an EE Bond before it is five years old.

3)Only in times of a Federal Disaster being declared, can a Savings Bond be cashed-in before 1 year.

4)To cash-in an EE Savings Bond, simply bring it down to your local bank. Be sure to call first, some banks do not handle the cashing in of US Savings Bonds.

5)Make sure you know what your bonds are worth before cashing in.

Who is eligible for EE Savings Bonds?

Corporations, individuals, associations, public or private organizations, and fiduciaries can own paper Series EE Bonds.

You can own U.S. Savings Bonds if you have a Social Security Number and you're a:

1)Citizen of the United States living abroad (must have U.S. address of record).

2)Resident of the United States.

3)Civilian employee of the United States regardless of residence.

NOTE: Minors may own U.S. Savings Bond SERIES EE.

Below are Steps to enable you to cash in Series EE Savings Bonds

1)Be sure of the different interest rates of EE savings bonds. This will help you decide whether it makes financial sense to cash in your bonds. Also depending on the year issued, EE savings bonds have different interest rates.

2)Beware that you cannot redeem an EE savings bond for a year after it was purchased.

3)In case you choose to redeem an EE savings bond before it is five years old, know that certain penalties apply the bond is meant to be long-term investment.

4)You have to wait for at least twenty years for the best investment since EE savings bonds double in value at the 20 year mark.

5)Electronic bonds and paper bonds should be cashed in differently.

6)Prepare to pay taxes on your EE savings bond.