What about rolling over fixed-rate EE bonds?

Thursday, May 11th, 2006
Categorized as: Series EE US Savings Bonds

Can I trade-in my 3.2% EE bonds for the new 3.7% version?

Tom’s response

Because you have to hold Savings Bonds for one year, the 3.7% rate will be history by the time you can redeem the 3.2% EEs. Nonetheless, you have the right idea.

You do need to factor in how much money you’re dealing with. The difference between 3.2% and 3.7% is 50 cents per year per $100 of investment.

So if what you have is a $50 EE, representing an investment of $25, you’d spend more on gas driving to the bank than you’d earn by making the switch.

On the other hand, if you have an investment of $10,000 that you expect to keep in EEs for 10 years, switching from 3.2% EEs to EEs that paid 3.7% or more would be an easy way to make at least $500.

Rate this post (1 to 5 stars):  1 Star2 Stars3 Stars4 Stars5 Stars
(Average rating: 2.00 stars)

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:

One Comment

On May 12th, 2006 Mario said:

I would advise against buying EE bonds in a (still)rising rate environment, especially with the yield curve as flat as it is. If you’re using TreasuryDirect, and want to invest in the long run, get a 10 year T bond (the security determining the EE rate). If you want to invest in the short run, get a 6 month T bill which still beats the current EE rate by more than 1%. These have recently become very easy to buy for TreasuryDirect users.

Comments Closed

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

Savings Bond Calculator


Savings Bond

Get an answer to your questions from the Treasury's Savings Bonds team.

Click below to ask a question.

Ask the Treasury


Invest online in Savings Bonds or
marketable Treasury securities.

Deal directly with the U.S. Treasury.

More info


Log in