Series EE Savings Bonds

A low-risk, government-backed savings bond. Those purchased on or after May 1, 2005, earn a fixed rate of return. Those purchased between May 1997 and April 30, 2005, earn a variable rate of return. EE Bonds are sold at face value, in amounts of $25 or more, up to a maximum of $10,000 a year. EE Bonds mature in 20 years, but they earn interest for 30 years. They must be held at least one year. A three-month interest penalty is applied if they are held less than five years. Interest is exempt from state and local income taxes. (As of 2012, paper savings bonds are no longer sold. E Bonds, which are the predecessor to EE Bonds and are no longer issued, can be converted to paperless bonds.)

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