EE Bonds are zero-coupon bonds in that they earn interest monthly but do not pay that interest until they mature or are redeemed. The interest compounds semiannually. EE bonds come in either paper or electronic form.
Just so, what is an EE Series Bond?
Series EE bonds issued May 2005 and after earn a fixed rate of interest. EE bonds purchased between May 1997 and April 30, 2005, earn a variable rate of interest. Interest is added to an EE bond monthly and paid when you cash the bond. Paper bonds were sold at half the face value; i.e., you paid $25 for a $50 bond.
Are EE savings bonds still earning interest?
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.
Do EE bonds double in 20 years?
If an EE Bond does not double in value (reach its face value) as a result of applying the fixed rate of interest for those 20 years, Treasury will make a one-time adjustment at the 20 year anniversary of the bond's issue date to make up the difference. EE Bonds continue to earn interest for up to 30 years.