EE Series Bond College Savings

Series EE savings bonds are one of the safest savings products available. The series EE bond yield is currently fixed, but any bonds purchased before May 2005 will have a variable yield.

EE Bond Maturity Period

The standard EE bond maturity is 30 years for the paper version, but they can be cashed in early. Please make sure that if you process an EE bond redemption, you check the issue date. There is a penalty for any redemption within five years of issuance.

Purchasing EE Savings Bond

These bonds can be purchased directly from the Treasury website or in paper form from most financial institutions. When purchasing the EE series, education is usually the primary reason, but retirement and gifting are also popular.

Electronic EE bonds are sold at face value. The minimum to purchase is $25 with a maximum of $5,000 in a calendar year. The paper version is sold at half its face value with the rest due at EE bond maturity. They range from $50 (a $25 investment) to $10,000.

The Series EE bond yield for those with variable rates is calculated by using 90% of the 6-month average of 5-year Treasury Securities yields. These are older bonds so the EE bond maturity will be much sooner than those with fixed interest rates.

EE Bond Gains Taxation

The interest earned on EE Savings bonds are subject to federal income tax. There are some exclusions in the EE Series Education Program if the bond is redeemed for educational purposes.

EE Bond Savings Financial Help

While it is important to do your own research to make sure any investment decision is the right one.  Please consult with an experienced EE bond savings financial professional before finalizing any investment purchase.