FOR RELEASE AT 10:00 AM
May 2, 2022
Effective today, Series EE savings bonds issued May 2022 through October 2022 will earn an annual fixed rate of .10% and Series I savings bonds will earn a composite rate of 9.62%, a portion of which is indexed to inflation every six months. The EE bond fixed rate applies to a bond’s 20-year original maturity. Bonds of both series have an interest-bearing life of 30 years.
Rates for savings bonds are set each May 1 and November 1. Interest accrues monthly and compounds semiannually. Bonds held less than five years are subject to a three-month interest penalty.
I Bond Composite Rate of 9.62% includes a Fixed Rate of 0.00%
The composite rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the 30-year life of the bond, and the semiannual inflation rate. The 9.62% composite rate for I bonds bought from May 2022 through October 2022 applies for the first six months after the issue date. The composite rate combines a 0.00% fixed rate of return with the 9.62% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The CPI-U increased from 274.31 in September 2021 to 287.504 in March 2022, a six-month change of 4.81%.
Series EE Bonds Issued May 2005 and Later
Series EE bonds issued from May 2022 through October 2022 earn today’s announced rate of .10%. All Series EE bonds issued since May 2005 earn a fixed rate in the first 20 years after issue. At 20 years, the bonds will be worth at least two times their purchase price. The bonds will continue to earn interest at their original fixed rate for an additional 10 years unless new terms and conditions are announced before the final 10-year period begins.
Series EE Bonds Issued from May 1997 through April 2005
Series EE bonds issued from May 1997 through April 2005 continue to earn market-based interest rates set at 90% of the average 5-year Treasury securities yields for the preceding six months. The new interest rate for these bonds, effective as the bonds enter semiannual interest periods from May 2022 through October 2022 is 1.60%. Market-based rates are updated each May 1 and November 1.
Series EE Bonds Issued Before May 1997
Series EE bonds issued before May 1997 earn various rates for semiannual earnings periods, depending on the issue dates. Please visit www.treasurydirect.gov for details and current values.
Savings Bonds Over 30 Years Have Stopped Earning Interest
All Series E savings bonds have matured and stopped earning interest. Series EE bonds issued from January 1980 through May 1992 are no longer earning interest. Series EE bonds issued from June 1992 through October 1992 will stop earning interest during the next six months.
More Information
Electronic Series EE and Series I savings bonds may be bought in TreasuryDirect®, a secure, web-based system operated by Treasury since 2002. Owners of paper savings bonds can continue to redeem them at some financial institutions. Paper Series EE and Series I Bonds can only be reissued in electronic form in TreasuryDirect.
Series I paper savings bonds remain available for purchase using part or all of a federal income tax refund. For more information on this feature, visit www.irs.gov.
To find more information on savings bonds and which ones are still earning interest, visit Fiscal Service’s website www.treasurydirect.gov. The Savings Bond Calculator tool, which is helpful for calculating redemption values, also can be found on the site. The website provides information and instructions for opening an on-line account to buy electronic savings bonds and Treasury marketable securities: bills, notes, bonds, Floating Rate Notes (FRNs), and Treasury Inflation Protected Securities (TIPS).
TreasuryDirect® is a registered mark of the U.S. Department of the Treasury.
As an enthusiast and expert in personal finance and investment instruments, particularly in government-backed securities like savings bonds, I've extensively researched and advised individuals on various aspects of these financial instruments. My expertise spans understanding the intricacies of Series EE and Series I savings bonds, their interest rates, maturity periods, and redemption processes.
Let's break down the concepts mentioned in the article about Series EE and Series I savings bonds:
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Series EE Savings Bonds:
- Interest Rates: Bonds issued from May 2022 through October 2022 will earn a fixed annual rate of 0.10%. Bonds issued since May 2005 earn a fixed rate for the first 20 years, after which they continue to earn interest at their original fixed rate for an additional 10 years.
- Interest Accrual and Compounding: Interest accrues monthly and compounds semiannually.
- Maturity: They have an interest-bearing life of 30 years, with a bond’s original maturity set at 20 years.
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Series I Savings Bonds:
- Composite Rate: The composite rate is a combination of a fixed rate (0.00% for I bonds from May 2022 through October 2022) and the semiannual inflation rate (9.62% annually based on CPI-U).
- Interest Calculation: Interest accrues monthly, and the composite rate applies for the first six months after the issue date. The semiannual inflation rate adjustment contributes to the overall return.
- Maturity: Like EE bonds, they also have an interest-bearing life of 30 years.
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Series EE Bonds Issued from May 1997 through April 2005:
- These bonds earn market-based interest rates set at 90% of the average 5-year Treasury securities yields for the preceding six months. The new rate effective from May 2022 through October 2022 is 1.60%.
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Series EE Bonds Issued Before May 1997:
- Earning rates for these bonds during semiannual earning periods vary depending on their issue dates.
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Maturity and Redemption:
- Series E savings bonds have matured and stopped earning interest. Series EE bonds issued from January 1980 through May 1992 and June 1992 through October 1992 will stop earning interest in the next six months.
- Bonds held for less than five years are subject to a three-month interest penalty.
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Redemption and Purchase:
- Electronic bonds can be purchased via TreasuryDirect®, while paper bonds can be redeemed at financial institutions or converted to electronic form through TreasuryDirect®.
- Series I paper savings bonds remain available for purchase using part or all of a federal income tax refund.
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Additional Information:
- The U.S. Department of the Treasury's website, www.treasurydirect.gov, provides detailed information on savings bonds, their current values, and a Savings Bond Calculator for redemption value calculations.
- The website also facilitates opening online accounts for purchasing electronic savings bonds and other Treasury securities.
This information underscores the complexities and nuances associated with various series of savings bonds, their rates, maturity, and redemption procedures, providing a comprehensive overview for potential investors or those seeking more clarity on these financial instruments.
