I Bond’s Fixed Rate Holds At 0.0%; EE Bonds Still Double In 20 Years


  • The U.S. Treasury did the right thing today, keeping I Bonds and EE Bonds very attractive investments, for different reasons.
  • I Bonds purchased from November 2020 to April 2021 will earn a composite annualized interest rate of 1.68% for six months.
  • EE Bonds continue to have a fixed rate of 0.1% but will double in value after 20 years, providing an effective annual return of 3.5%.

Whew, no surprises.

The U.S. Treasury just announced it is holding the fixed rate for U.S. Series I Savings Bonds at 0.0%, ending speculation that it could set a negative fixed rate for the I Bond for the first time in history. It also retained very generous terms that allow the Series EE Savings Bond to double in 20 years, earning an effective interest rate of 3.5%, much higher than market rates.

Read my full analysis on SeekingAlpha.com

About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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