All U.S. savings bonds have a final maturity date when they stop earning interest. Investors often lose track of this date because the U.S. Treasury Department has extended the original maturity of some bonds up to 30 years. The length of time savings bonds earn interest depends on the bond series and the issue date.
Keeping this in consideration, what is the interest rate on EE bonds?
Current U.S. Savings Bond Interest Rates
|Savings Bond Series||Current rate if purchased from May 1, 2018 to Oct 31, 2018||Rate of prior period (Nov 1, 2017 to Apr 30, 2018)|
|Series EE Bonds||0.10%||0.10%|
|Series I Bonds||2.52%||2.58%|
|Series I Bond Variable Rate||2.22%||2.48%|
|Series I Bond Fixed Rate||0.30%||0.1%|
Are I bonds tax free?
Savings bonds are exempt from taxation by any State or political subdivision of a State, except for estate or inheritance taxes. Interest earnings are subject to Federal income tax. Interest earnings may be excluded from Federal income tax when used to finance education (see education tax exclusions).