Series EE Bond

August 24, 2024 Fixed Income

A Series EE bond is a nonmarketable U.S. savings bond with fixed-rate accrual and Treasury-specific redemption rules.

On this page

A Series EE bond is a nonmarketable U.S. savings bond that earns interest under Treasury rules and is redeemed through TreasuryDirect rather than sold in the secondary market. Current EE bonds earn a fixed rate, and Treasury states that new EE bonds are guaranteed to double in value if held for 20 years.

Key Takeaways

Series EE bonds are retail savings bonds, not tradable marketable Treasury bonds.
New EE bonds are electronic and are bought through TreasuryDirect.
EE bonds earn interest monthly and compound semiannually.
Redemption before five years generally forfeits the last three months of interest; redemption is normally unavailable during the first year.
Older paper EE bonds and Patriot Bonds can have issue-date-specific rules, so the issue date matters.

How Series EE Bonds Work

Feature	Series EE Bond Treatment
Marketability	Nonmarketable savings bond.
Rate type	Fixed rate for current EE bonds.
Interest accrual	Monthly accrual with semiannual compounding.
Long-horizon rule	Treasury guarantees current EE bonds double in value if held 20 years.
Final maturity	EE bonds can earn interest up to 30 years.
Main source	TreasuryDirect for issue-date rules, rates, and redemption values.

Series EE Bond vs. Series I Bond

Feature	Series EE Bond	Series I Bond
Rate structure	Fixed-rate savings bond.	Fixed rate plus inflation component.
Inflation link	No direct inflation component.	Inflation component updates every six months.
Value behavior	Treasury’s 20-year doubling rule is central.	Composite rate changes with inflation.
Best comparison	Long-horizon fixed savings goal.	Inflation-sensitive savings goal.
Verification	TreasuryDirect EE bond page and account records.	TreasuryDirect I bond page and current rate table.

Practical Example

An owner deciding whether to redeem an EE bond after three years should check the bond’s issue date, current value, redemption eligibility, and early-redemption penalty. An owner approaching the 20-year mark should also verify how Treasury’s doubling rule applies to that specific bond.

Common Mistakes

Calling EE bonds risk-free without mentioning redemption restrictions, inflation risk, and opportunity cost.
Assuming every older EE bond has the same rate rules as a newly issued EE bond.
Comparing EE and I bonds only by current headline rate.
Forgetting the one-year redemption restriction and five-year interest penalty.
Valuing paper EE bonds without using Treasury’s paper savings bond calculator.

Public Source Checks

TreasuryDirect EE bonds explains current EE bond interest, doubling, purchase, and redemption features.
TreasuryDirect comparing EE and I bonds compares current EE and I bond mechanics.
TreasuryDirect cashing EE or I savings bonds explains redemption timing and penalties.
TreasuryDirect savings bond calculator can value paper EE bonds.

Savings Bond: Broader U.S. retail savings bond category.
Series I Bond: Inflation-linked savings bond series.
Series E Bond: Historical predecessor series.
Compound Interest: EE bond interest compounds over time.
Maturity Date: Savings bonds stop earning interest at final maturity.

FAQs

Are Series EE bonds marketable?

No. Series EE bonds are nonmarketable savings bonds. They are redeemed through Treasury rules rather than sold in a secondary market.

Do Series EE bonds protect against inflation?

Not directly. Current EE bonds have a fixed-rate structure; Series I bonds are the savings bond series with an inflation component.

Revised on Sunday, June 21, 2026

Series E Bond

Series HH Bond

Browse Investing