How Series EE Savings Bonds work using the August 1993 bond as an example

Friday, November 19th, 2004
Categorized as: Yesterday's News (old post archive)

I own a $1,000 EE savings bond issued in August 1993. I thought it would be worth the full $1,000 after 10 years. I can’t find much information about savings bonds online. The little I could find on it makes it seem as if this bond may never be worth $1,000 but it will be worth $500 plus any interest. Is that how it works?

Tom’s response

Not all Savings Bonds are the same. At various times they have been issued under different rules.

The August 1993 EE savings bond is guaranteed to double in value in 18 years. Right now it’s worth $823. So it’s guaranteed to be worth $1,000 by August 2011, although it could reach that value before then, depending on the prevailing level of interest rates.

It will continue to pay interest for 30 years – until August 2023. Right now it’s earning 2.75%; in February it will begin to earn 3.06%. The interest rate it earns is tied to market rates and changes every six months.

If you want to cash it, do so in early February or early August to get the best return.

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FDIC Insured Certificates of Deposit can pay 1 or 2% more than savings bonds when held for a similar length of time. See top CD Rates Below:

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June 1, 2010

After six years, over 400 posts, 3,680 real comments, and over 90,000 spam comments (thank you, Akismet, for making managing a blog with comments possible), I am closing public comments on I will contine to update the main articles on this site, but not the comments.

Virtually every question about Savings Bonds has been asked and answered on this site multiple times. Use the search feature (see the box in the gray area near the top of this page) or the detailed menu on the lower part of the home page to find the information you're looking for. If you have a copy of Savings Bond Advisor, you can ask me a question here.

Tom Adams

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