How is the interest rate of an E Bond determined?
The interest rate of an E Bond depends upon the original issue date. E Bonds that have not reached final maturity are earning interest at either guaranteed minimum or market-based rates, whichever produces the higher redemption value. E Bonds increase in value every six months, and interest is compounded semiannually. The rate that Treasury announces each May and November is applied to a bond for the 6-month earning period. For example, the 6-month earning period for a bond issued in May is from May through October; for a bond issued in June, it’s June through November.
