- You can purchase Series EE savings bonds on paper or electronically. If you buy them electronically, you purchase them at their face value. The government then credits interest to the bonds over time. If you buy paper bonds, you purchase them at a 50 percent discount to face value. Typically, you can purchase savings bonds through a retail bank in your area. You can also purchase them through TreasuryDirect (see Resources). As of 2011, you can purchase them electronically in any amount over $25. If you purchase paper bonds, you must select one of the available denominations, which vary between $50 and $10,000.
- You can redeem, or cash in, Series EE savings bonds at any time after they are 12 months old. However, if you cash in your EE savings bonds within the first five years, you will be penalized the last three months worth of interest.
- The Treasury guarantees that Series EE bonds will at least double in value after 20 years. If interest rates increase, they could double in value faster. Series EE bonds continue to earn interest for 30 years, however.
- Series EE bonds are a security. However, unlike with other securities, the owner does not have to be over 18 years of age. Use caution, however, when titling these securities in a child's name. Assets owned by a student count more heavily against the student than parental assets when calculating eligibility for need-based financial aid under the federal system.
- Advertisement -
- Advertisement -