E Savings Bonds
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- By admin
- April 20, 2009
Since the inception of the US Savings Bond program in the 1930′s, savings bonds have been issued sequentially in alphabetical order. Starting at the letter “A” and working their way through the alphabet. The bonds include “E Savings Bonds.”
E Savings Bonds (EE/E) are a safe, government issued, savings products that pay interest over time. The E Savings Bonds purchased between May 1997 through April 30, 2005 will pay interest based on current market rates for up to 30 years from the original issue date. E Savings Bonds purchased after May 2005 are earning a fixed rate of return of 3.50%.
All savings bonds, including the E Savings Bonds, can be purchased through the government’s treasury portal, at almost any financial institution or through your employer’s payroll deduction plan.
Like all US bonds, series E Savings Bonds will eventually reach maturity and stop generating interest. Those bonds issued from May 1941-April 1965 along with those issued from December 1965-April 1975, have matured and no longer generate interest. All Savings Notes, issued from May 1967 through October 1970, have stopped earning interest. Series E Bonds with issue dates from May-October 1965 and May-October 1975 have matured as of 2005.
E Savings Bonds were a secure way for individuals to either help build a portfolio for retirement or were also used to help pay for the cost of continuing education, either for the bond holders, their children or their spouses. If an E Savings Bond was used towards educational expenses, the individuals were entitled to tax benefits upon the maturity and selling of their E Savings Bond.
Although the E Savings Bond is no longer being issued, there are US savings bonds that followed the sequence of alphabetical labeling. Regardless of what letter of the alphabet you may consider purchasing, a US savings bond may be an excellent investment option for your long term plans.