Savings Bond Alert #008

Tuesday, November 9th, 2004
Categorized as: Savings Bond Alerts

New Series EE rates on older bonds range from 2.83% to 4.00%

The U.S. Treasury has announced that rates for older Series EE Savings Bonds as they enter their next rate period will range from 2.83% to 4.00%. This compares to the 3.25% rate announced November 1 for new Savings Bonds.

This year, Savings Bonds that were issued in 1992 are moving into a new maturity period, which allows the Treasury to adjust the guaranteed rate on these bonds to the current 4%. With this announcement, the final four issues that had been paying 6% will be adjusted down to 4% when they enter their next six-month rate period.

Of the 298 active issue dates through October 2004, 46% will earn 4% interest during their next rate period. 30% will earn the announced 3.25% rate.

20% of the active issue dates will earn less than the announced 3.25% rate; these older bonds are candidates for redemption and reinvestment in new Savings Bonds. If you’d like to trade in older, low-rate bonds for new ones, be sure you don’t pay a hidden interest-rate penalty and that you avoid the deferred-tax time bomb.

New Series I Rates on older bonds range from 3.67% to 6.31%

Rates for older Series I bonds will range from 3.67% to 6.31%, compared to the 3.67% announced for new bonds on Monday. Like the I Bonds issued during the last six months, the new I bonds pay the lowest fixed base-rate ever, which gives them the lowest rate for any Series I bonds.

Don’t miss this alert

We are now taking pre-orders for the book version of Savings Bond Alert. The book is an expanded and enhanced hardcopy version of the information on our web site.

The book will have a new edition every six months. In addition to comprehensive information about all the issues facing Savings Bond investors, its 200-plus pages will include about 60 pages of tables summarizing the current interest rates and values for all Savings bonds.

We’ve specifially designed this book for those who have a Savings Bond investment of $10,000 or more. If you’re one of those amazing savers, you can read more about the book version of Savings Bond Alert on our web site.

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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 Savings-Bond-Advisor.com. 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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