Why is Treasury changing the way Series EE bonds earn interest?
A. This is the latest in a series of changes to Series EE bonds that will make them a more attractive way for Americans to save for the future. Q. When will the new rates for savings bonds take effect? A. The new way of setting rates for Series EE savings bonds takes effect for bonds issued on or after May 1, 1997. Q. How will interest get added to savings bonds after May 1, 1997? A. New EE bonds will increase in value every month. The bonds interest rate is compounded semiannually. The rate that Treasury announces each May and November will be applied to a bond for the 6-month earning period. Q. How will Treasury set the new rate? A. Savings bonds will earn the new higher rates right from the start. The rate is 90 percent of the average 5-year Treasury market yields for the preceding six months. Treasury will announce a savings bond rate each May 1 and November 1. The rates announced each May and November are the annual rates that apply to bonds for that six month earning period. For
