EE Savings Bonds
U.S. government bonds. Series EE savings bonds are issued in denominations of $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000 at 50% of face amount. Maturity is ten years. A fixed graduated rate increasing from 4.16%, after six months to 7.5% after five years is provided. Thereafter, the market-based variable investment yield will be used for determining the redemption value of a bond, unless the minimum investment yield of 7.5% produces a higher value. The bonds can be redeemed any time after six months from issue date. An annual limitation of $15,000 price is set. For tax purposes, interest accrues for federal income, estate, inheritance, and gift taxes. The interest is exempt from state and local income taxes. Federal income tax may be reported as it accrues or in the year the bond matures, is redeemed, or is otherwise disposed of. The bonds are registered in the names of individuals (in single of coownership of beneficiary form) or in names of fiduciaries or organizations (in single ownership). The bonds are not eligible for transfer or pledge as collateral. These bonds can be exchanged for Series HH bonds in multiples of $500; they also offer tax deferral privileges.