What is the Series EE Bonds That I Hear About?
Series EE bonds are the most popular savings bonds around for individual investors. Series EE bonds sell for half their face value. Those bonds released after May 1, 2005 accrue interest at a fixed rate. When Can I Redeem My Savings Bonds? You can redeem bonds in less than a year, but you will incur a penalty, much like if you withdraw money from a bank too soon. If you redeem your bonds within less than 5 years from the date of purchase, you lose interest from the last 3 months. After 5 years, you can cash the bonds anytime without penalty. Therefore, you should not set about buying savings bonds unless you’re sure you won’t need the money for a while.
