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Article: New Fixed Rate for EE Savings Bonds.(Brief Article)
- Article from:
- Kiplinger's Ask Kim Web Column
- Article date:
- May 2, 2005
CopyrightCOPYRIGHT 2005 The Kiplinger Washington Editors, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Kimberly Lankford, Kiplinger Washington Editors
I understand that the rules for EE savings bonds just changed. How do the new rules work?
Series EE savings bonds issued in May 2005 and later will now have a fixed rate rather than an adjustable rate that is set every six months. The rate for EE bonds purchased from May 2005 to October 2005 is 3.5%. That rate will remain the same for the first 20 years and will be extended for another ten years after that unless the Treasury Department announces different terms at that time (EE bonds earn interest for 30 years). Rates still will be announced every May 1 and November 1 and apply to new bonds that ...