Which saving bond

EE bonds issued from May on EE bonds we sell today earn the same rate of interest a fixed rate for up to 30 years. When you buy the bond, you know what rate it will earn for at least the first 20 years. Treasury announces the rate for new bonds each May 1 and November 1. EE bonds bought from May through April earn a rate of interest that changes every six months a variable rate.

EE bonds bought before May earn interest at different rates depending on when they were bought. The interest rate for a bond bought from November through April is an annual rate of 0. Regardless of the rate, at 20 years the bond will be worth twice what you pay for it. If you keep the bond that long, we make a one-time adjustment then to fulfill this guarantee. Federal income tax: Yes State and local income tax: No See: Tax Considerations Using the money for higher education may keep you from paying federal income tax on your interest.

How long must I keep an EE Bond? EE bonds earn interest until they reach 30 years or until you cash them, whichever comes first. You can cash them after 1 year. Calculator Workplace pension contribution calculator. Tool Find a retirement adviser. Calculator Redundancy pay calculator. Home Savings Types of savings. Savings Types of savings. Fixed-rate savings bonds. What types of fixed-rate savings bonds are there? The risk and return of fixed-rate savings bonds Accessing your money from fixed-rate savings bonds Are fixed-rate savings accounts safe and secure?

Where to get a fixed-rate savings account Tax and fixed-rate savings bonds If things go wrong with your fixed-rate savings bonds. Is a fixed-rate savings bond right for you? Did you know? Back to top. Join our Facebook group.

The risk and return of fixed-rate savings bonds. These products tend to offer higher interest rates than instant access accounts. The longer you can afford to lock your money into one of these accounts, the higher the interest rate is likely to be.

Find out more about how inflation affects savings in our guide Inflation — what does it mean for your savings. Accessing your money from fixed-rate savings bonds. These products usually require you to tie up your money from between six months and five years.

There can be big penalties for early withdrawal. So make sure you know what these are and have budgeted to make sure you can afford not to have instant access to your cash. In some cases, you might not be allowed to access any of your money in the account until the end of the term — so check the facts before you commit. Use our Money Navigator Tool.

Have you got money worries because of coronavirus? Are fixed-rate savings accounts safe and secure? Find out which banks are part of which authorised firms on the Which? Find out more in our guide Compensation if your bank or building society goes bust. Where to get a fixed-rate savings account. Buy online, through a branch, by post or over the phone — depending on the product and provider.

Find out more about using comparison sites to find a savings account in our guide Finding the best deals with price comparison websites. Tax and fixed-rate savings bonds. Some savings bonds are available as tax-free ISAs. Find out more in our guide Tax on savings and investments — how it works. If things go wrong with your fixed-rate savings bonds. Then find out more in our guide Sort out a money problem or make a complaint.

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Talk to us for money guidance using our web form. Talk to us live for money guidance using WhatsApp. Although your browser settings don't allow you to view the website survey we're conducting, please e-mail your comments. You can buy I bonds at that rate through April Treasury currently offers two series of savings bonds: EE and I.

You can buy paper I bonds with your IRS tax refund. Interest is earned monthly and compounded semiannually until the bonds reach 30 years or until you cash them, whichever comes first. Loss of previous three months of interest if you cash during the first five years.

For example, if you cash the bond after 18 months, you get the first 15 months of interest. Income tax applies at the federal level, but not the state and local levels. Report interest on your federal return either every year or for the year when the first of these things happens: the bond matures, you cash the bond, or you give up ownership of the bond and it is reissued.