How is interest calculated on Series EE bonds?
Series EE bonds are savings bonds issued by the U.S. government. Bonds can be purchased both electronically and in paper form and carry a U.S. government-backed guarantee of principal and interest payments.Electronic EE BondsElectronic EE bonds are sold at face value, so if you invest $50, you receive $50 back at maturity. Additionally, you receive monthly interest payments.Paper EE BondsPaper EE bonds are sold at half of their face value, so if you invest $25, you receive $50 at maturity. You receive no interest payments as the discounted value of the bond encapsulates your interest.Rate Calculation for Paper EE BondsFor paper EE bonds issued June 2003 and later, the Treasury Department guarantees that the bond will double in value after 20 years. Afterwards, the bond will earn the fixed rate of interest that electronic EE bonds earn.Rate Calculation for Electronic EE BondsSeries EE bonds issued May 2005 or later have a fixed rate which is calculated by the U.S. government based on a
