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

  1. Alan says:

    Thank you very much for the super helpful articles! Do you think the rate or doubling period on EE bonds are going to change this year given all the recent concern over inflation?

  2. Jerry Sutter says:

    My name is Jerry Sutter and I got a United States saving bond series. EE I got in November 19 of 1991 and I want to know how much money will I get on it!!!

    • Tipswatch says:

      Hi Jerry, if you got that EE Bond in November 1991 it is maturing this month and technically you will owe income taxes this year on the interest you earned. I assume this is in a safety deposit box? Cash it in because it will no longer earn interest. If you invested $1,000 in EE Bonds in November 1991, they are now worth $4,147. You can use a calculator on this page: https://treasurydirect.gov/BC/SBCPrice … Keep in mind that for these old EE Bonds, the “denomination” is actually double your original investment, or “issue price” So you need to double the eventual result. If you put in a $1,000 denomination the result you get will be based on a $500 original purchase.

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