Q. I still own Series E and EE bonds. I bought them at a guaranteed interest rate. Right?
A. Per the U.S. Treasury website www.savingsbonds.gov, the interest you earn depends on when you bought the bonds. Check out their website for great information. In this case, you bought the bonds before 1995 and the rate …depends. From their website:
EE/E Bonds Issued before May 1995
This information applies only to Series E/EE bonds and savings notes issued April 1995 or earlier. The rate at which EE/E Bonds issued before May 1995 earn interest depends on their issue date.
Before reaching five years old, they earned interest on a fixed graduated scale, except for those bonds issued March 1993-April 1995 that earned a fixed rate of 4%.
Once your bonds were held for five years, they started earning interest at either guaranteed minimum rates or market-based rates, whichever produces the higher redemption value.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of 1. avoiding penalties under the Internal Revenue Code or 2. promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC.
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