Series EE And Series I Government Savings Bonds Are Paying 2.7% and 5.27% — Here's How To Buy Them

The U.S. Department of the Treasury offers two savings bonds: Series EE and Series I.

Understanding how each one works, along with the corresponding interest rate and how to buy, will help you make an informed and confident investing decision. 

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Series EE Bonds

Series EE Bonds are a secure investment option with specific characteristics and rules for redemption. 

Bonds issued between Nov. 1 and April 30, 2024, offer a 2.7% interest rate. A notable feature of Series EE Bonds is their guarantee to double in value within 20 years, providing a stable, long-term growth opportunity. 

These bonds are issued electronically and can be purchased through a TreasuryDirect account.

While you have the flexibility to cash in EE bonds after one year, it’s important to note that redeeming them within the first five years incurs a penalty. This penalty equates to losing the interest of the last three months. Holding onto these bonds for at least five years is more beneficial to maximize their value.

Series I Bonds

Series I Bonds issued from Nov. 1 to April 30, 2024, offer an interest rate of 5.27%, inclusive of a fixed rate of 1.3%. 

These bonds are structured to guard against inflation, with their interest rate adjusting every six months in response to inflationary trends. This design makes them a sound investment choice for those seeking to hedge against rising prices.

I Bonds can be acquired either electronically through a TreasuryDirect account or as paper bonds using an IRS tax refund. 

As for redemption, I Bonds follow a similar structure to EE Bonds. They can be cashed in a year after purchase. However, doing so before completing five years will incur a penalty: the forfeiture of the last three months of interest. This penalty is designed to encourage holding the bonds for longer. 

Familiarity with savings bond rates and how to buy them allows for efficient investing that aligns with your short- and long-term goals.