A Handy Guide to Series EE Bonds and their Savings Rates

Savings bonds often outcompete savings rates when it comes to interest rates. While savings accounts traditionally earn between one to two percent savings rates, Savings bonds, on the other hand, can earn upwards of 5% interest. Here, we’ll take a quick look at Series EE bonds and their investment potential.

Where Can I Buy Series EE Bonds?
Normally, Series EE bonds are readily available at banks and other financial institutions. Brokerage firms also offer Series EE bonds. Some firms have access to special baskets of government bonds. You may be able to take advantage of payroll deduction purchase plans that are offered by your employer.

The easiest way to buy savings bonds is through TreasuryDirect, the government’s online bond merchant. When you buy a bond on TreasuryDirect, you can manage and sell that bond electronically via your TreasuryDirect account.

Face Value Prices of Series EE Bonds
The Fed offers a variety of face value prices on Series EE bonds, notably: $50, $75, $100, $200, $500, $1,000, $5,000, or $10,000. You can purchase each of these bonds for half of the face value price.

You are permitted to buy up to $30,000 of Series EE bonds in any calendar year. Series EE bonds earn fixed interest rates that are determined by the Fed.

Benefits of Series EE Bonds
Series EE bonds are known for paying powerful interest rates and staying ahead of inflation. These bonds tend to offer strong rates even when the interest rate environment is weak. That’s because these bonds are linked to a variety of different government coffers, and can withstand a low interest rate marketplace.

However, it’s wise to always check out prevailing interest rates before you buy Series EE bonds. Since these are fixed investments, you want to make sure that you purchase them when interest rates are strong.

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