Savings bonds program was created in 1935 during franklin d. They are accrual bonds, which means that they accrue interest as the years roll on even though you arent seeing any cash. A savings bond issued at a discount from par par with a fixed rate of interest, set at the time of purchase. You can find the issue date right under the series name, on the upper right corner of the bond. Now you may only obtain series ee bonds by purchasing them electronically at treasurydirect. If you hold an electronic series ee or series i bond in treasurydirect, you can find the bond s current value there.
Other series ee bonds, such as those bought through a payroll savings plan, were processed differently and through different vendors that. It will reach full face value after 20 years and will stop earning interest after 30. Instead, the bonds are issued at deep discounts to face value and have been calculated to compound to the point that they are worth the face value of the bond on the maturity date, which is guaranteed by the treasury. Accrualtype of security interest is paid when the bond is cashed earnings are inflationindexed. Jan 29, 2020 only patriot bonds purchased through certain financial institutions were eligible for the patriot bond inscription. It is a paper ee bond with patriot bond printed on the top half of the bond between the.
Because your patriot bonds are regular series ee savings bonds, cashing in the bonds is a welloiled process. And thats a shame, because if purchased with surety that you can hold it for 20 years, it is a powerhouse of. Patriot bonds, essentially series ee savings bonds, were introduced to americans as a means of showing their support for the nations antiterrorism. Series ee savings bond financial definition of series ee. Other series ee bonds, such as those bought through a payroll savings plan, were processed differently and through different vendors that didnt have access to the requisite printing equipment.
You can cash a savings bond any time after 12 months from the purchase date. Patriot bonds are series ee savings bonds sonamed dec. The series ee bond, often referred to as a patriot bond, is a nonmarketable, interestbearing u. If series ee or series i bonds are cashed in to pay for qualifying highereducation costs. All series ee bonds, including patriot bonds, reach full maturity and stop earning. And thats a shame, because if purchased with surety that. However, if you cash out a bond before five years have passed, you will lose three months of interest as an early withdrawal penalty. Patriot bonds were issued between the years 2001 and 2011, a decadelong process that allowed investors from a variety of backgrounds to support the u. Series ee bonds series ee bonds mature after 30 years, meaning they can earn interest for that.
If you own a savings bond, you are allowed to designate either a coowner or a beneficiary for the bond. If you report savings bond interest to the irs every year. How much is my 50 dollar series ee savings bond worth. Electronic series ee savings bonds, purchased via treasurydirect, are sold at face value. Once open, choose the series and denomination of your bond from the series and denomination dropdown boxes. The treasury department adds interest to a patriot bond each month. The value calculator provides detailed information, but is not an official source of value data. All interest on the bonds is calculated semiannually, but paid at maturity and exempt from state and local taxes. Dec 06, 2018 the patriot bond was sold from december 2001 to december 2011. The patriot bond was sold from december 2001 to december 2011. Series ee savings bond in the united states, a savings bond, exempt from state and local taxes, with a fixed interest rate. How long will it take for a savings bond to reach its face.
What is a patriot bond and what can you do with it. The current rate of an ee bond depends on when the bond was first issued. How much is my 50 dollar series ee savings bond worth after. Mar 29, 2019 the us treasury produces two types of savings bonds. For bonds purchased starting on may 1, 2005, the variable rate was eliminated and interest changed to a fixed flat rate for the life of the bond or for the first 20 years of a 30 year bond. Savings bonds rochester ny, canandaigua ny canandaigua.
Jan 03, 2020 form 8815, exclusion of interest from series ee and i u. Patriot bonds offered americans one more way to express their support for our nations antiterrorism efforts. Extensive effort is made to ensure the data provided is accurate. Jun 28, 2018 how long does it take to cash in a patriot bond. Oct 20, 20 patriot bonds, essentially series ee savings bonds, were introduced to americans as a means of showing their support for the nations antiterrorism programs. With that in mind, here are five things you should know about the tax treatment of series ee bonds. The fixedrate makes the ee a good deal when interest rates are high, but that doesnt necessarily mean its a bad deal when rates are low. The worth of a patriot bond is enhanced by tax advantages. Click the get started link above or the button at the bottom of this page to open the calculator. What you must know about taxation of ee series bonds ed. Patriot bonds function identically to paper series ee bonds, although theyre distinguished by the words patriot bond printed at the top of the.
The federal tax incurred on the interest can be paid annually or deferred. Series ee savings bonds are issued and redeemed electronically. When an i or e savings bond matures is it worth more than the. How to cash in series ee savings bonds depositaccounts. Yes, ee bonds are a good investment, but if youre interested. Ee bonds are guaranteed to reach their maturity at face value within 20 years, which means the minimum effective pretax annual rate of return is slightly more than 3. Series ee bonds were overprinted patriot bond and were issued mid december 2001.
If its a series ee or series i bond, then it matures 30 years after the issue date. Only patriot bonds purchased through certain financial institutions were eligible for the patriot bond inscription. You can pay taxes on that interest as it accrues, but in most cases it makes more sense to defer paying the taxes until you decide to redeem the bond. If an ee bond does not double in value by the 20year maturity date, the. The interest rate isnt fixed, so the length or term of maturity is variable. In reality, the only true difference between a patriot bond and a series ee savings bond was the title itself. Patriot bonds are regular ee savings bonds, so you would cash them in the same way.
Look for the add a bond section of the software and key in details about your series ee bonds. The legend also will appear on series ee bonds available at the bureau of fiscal services tresaury. Click calculate to get the current cash value of the bond. The series ee bond is a 30year, fixedrate savings bond. Series ee savings bonds sold through financial institutions will be especially inscribed with the legend patriot bond.
Check or calculate the value of a savings bond online the balance. There is no adjustable component to act as a hedge against inflation, but the treasury does provide a guarantee. I have a patriot bond series ee that i got back in 2002. Even more unappealing are the changes to the way interest paid on series ee bonds is calculated. Series ee and i are intended to be savings bonds, and series hh is intended to be an investment bond.
Grandma would buy a bond at a bank with cash and receive. Newly issued ee bond rates are set in may and november and will remain constant through the life of the bond. A patriot bond is a type of series ee savings bond that was issued for a period of 10 years following the 911 attack. The interest is adjusted every six months and is equal to 90% of the average 5year treasury security yield over the six months preceding the calculation.
Individual the patriot savings bond treasurydirect. When an i or e savings bond matures is it worth more than. Aug 31, 2014 even more unappealing are the changes to the way interest paid on series ee bonds is calculated. The interest that is then earned and accrued on the savings bond is growing in value towards the denomination value of the bond.
Ee bonds current ee bond values, ee bond calculator. Series e united states savings bonds were government bonds marketed by the united states department of the treasury as war bonds during world war ii from 1941 to 1945. Each bond was identified by a unique serial number. Paper ee bonds, last sold in 2011, were sold at half of face value. Accrualtype security interest is paid when the bond is cashed interest is added monthly and compounded semiannually. The united states treasury department used to sell savings bonds in the form of paper certificates. Nov 21, 2018 a patriot bond is a type of series ee savings bond that was issued for a period of 10 years following the 911 attack.
The word patriot was added to some, but not all, ee bonds in 2001. While the majority of people cash their savings bonds in at local banks, it is also possible to send the bonds to the treasury department and either receive a check for. Patriot bonds were created in response to the 911 attacks as a way to raise money for antiterrorism efforts. Any ee bond bought before 1983 was fully mature by 2012 and has stopped earning interest. These bonds are guaranteed to at least double in value over the. Store savings bond information you enter so you can view it again at a later date. To update your ee bond values, select the redemption value button.
Mar 01, 2019 series ee and i are intended to be savings bonds, and series hh is intended to be an investment bond. The software window has data entry button at the top where you can see a complete list of all entered bonds. As a debt obligation of the united states federal government, series ee bond interest like other u. A patriot bond is a special paper series ee savings bond created in direct response to the terrorist attacks of september 11. The patriot savings bond the patriot bond was sold from december 2001 to december 2011. Calculate the value of a bond based on the series, denomination and issue date entered. Series ee savings bonds and series i savings bonds will continue. Use the following calculator to find the current value of an ee bond.
If you redeem eee bonds in the first 5 years, youll forfeit the 3 mostrecent months interest. If you redeem ee e bonds in the first 5 years, youll forfeit the 3 mostrecent months interest. Series ee bonds carry a face value of twice what you purchase them for. The us treasury produces two types of savings bonds.
They are inscribed with the words patriot bond at the top of the face of the bond. Mar 23, 2020 savings bonds have been one of the most popular investments in the united states since 1935. All series ee bonds issued since june 2003 take 20 years to mature. What is the difference between patriot bonds and ee bonds.
A patriot bond is a physical paper series ee savings bond inscribed with the term patriot bond and purchased at a financial institution. According to the treasury, patriot bonds offer americans one more way to express their support for our nations antiterrorism efforts. Enter the required information such as the issue date of your series ee bond, the denomination, and serial number. How long will it take for a savings bond to reach its face value. The redeemed value equals the price plus accrued interest. Apr 25, 2016 the lowly series ee savings bond is a misunderstood and completely ignored investment. Form 8815, exclusion of interest from series ee and i u. Series ee bonds are a type of zerocoupon bond, which means you never receive interest income. Sold from december 2001 through december 2011, the bond provided a tangible way for americans to support the countrys reaction to the attacks, as proceeds from the bonds went to an antiterrorism government fund. It is a paper ee bond with patriot bond printed on the top half of the bond between the social security number and issue date. A beneficiary is the named individual who will eventually receive the payoff from the bond. The bonds were issued from december 2001 to december 2011 and then discontinued. Ee bonds purchased between may 1997 and april 30, 2005, are based on 5year treasury security yields and earn a variable marketbased rate of return.
May 01, 2005 newly issued ee bond rates are set in may and november and will remain constant through the life of the bond. Rates for older bonds may differ depending on when they were issued. Patriot ee bonds were sold for 50 percent of the face value. The lowly series ee savings bond is a misunderstood and completely ignored investment. There is no state or local income tax on the interest. Interest rates and terms for series ee savings bonds. The series ee bond is a nonmarketable, interestbearing u. After the war, they continued to be offered as retail investments until 1980, when they were replaced by other savings bonds. If you have your patriot bonds in hand, you might be able to convert the bonds to cash before the end of the day. Go to the tools page of treasury direct and select the savings bond wizard. Calculate the value of your paper savings bonds treasurydirect.