EE Bond

I Bond

Features

Issued at 50% of face value. (A $100 EE Bond costs $50.)

Issued at face value. (A $100 I Bond costs $100.)

Offered in 8 denominations ($50, $75, $100, $200, $500, $1,000, $5,000, and $10,000).

Offered in 8 denominations ($50, $75, $100, $200, $500, $1,000, $5,000, and $10,000).

$15,000 issue price ($30,000 face value) annual purchase limit per person.

$30,000 annual purchase limit per Social Security Number.

Interest

Calculated as 90% of 6-month averages of 5-year Treasury Securities yields.

Calculated as an earning of a fixed rate of return and a semiannual inflation rate based on CPI-U.

Rates announced every May 1 and November 1.

Rate Announcement: Same as EE.

Guaranteed to reach face value in 17 years.

No guaranteed level of earnings.

Increases in value monthly and compound semiannually. Interest is paid when the bond is redeemed.

Generally increases in value monthly and interest compounds semiannually (except in periods of deflation when the bond value could remain unchanged). Interest is paid when the bond is redeemed.

Earn interest for up to 30 years.

Life span: Same as EE.

Exchange

Can be exchanged for Series HH savings bonds.

Cannot be exchanged for any other series of savings bonds.

Cashing

Can be redeemed after first 6 months.

Same as EE.

A 3-month interest penalty applies to bonds redeemed during the first 5 years.

Same as EE.

Financial institution reports interest earnings (difference between redemption value and purchase price) on IRS form 1099-INT. Savings bonds are exempt from state and local income taxes.

Same as EE.

Eligible for tax benefits upon redemption when used for qualified education expenses.

Same as EE.