EE bonds explained
A Series EE savings bond earns a flat fixed rate (currently 2.40%) for its first 20 years — but its defining feature is the 20-year doubling guarantee: the Treasury ensures the bond is worth at least twice what you paid at 20 years, topping it up if the fixed rate falls short. That works out to about 3.5% per year if you hold the full term. EE bonds are best for money you can lock away for 20 years; cashing earlier gives you only the (low) fixed-rate accrual.
Source: TreasuryDirect. Data as of May 2026.
EE bond key facts (May 2026)
| Feature | Detail |
|---|---|
| Rate type | Flat fixed rate for the first 20 years (no inflation component). |
| Current fixed rate | 2.40% (May 2026 - October 2026) |
| 20-year guarantee | Worth at least 2x purchase price at 20 years (~3.5%/yr effective). |
| Buy | $25 to $10,000 per person per year, electronically at TreasuryDirect. |
| Hold | Cannot cash in the first 12 months; 3-month penalty before 5 years. |
| Mature | Stops earning interest after 30 years. |
| Tax | Federal-only (deferrable); exempt from state & local tax; education exclusion may apply. |
Source: TreasuryDirect. Data as of May 2026.
Why the 20-year mark matters
At today’s 2.40% fixed rate, simple compounding would not double an EE bond in 20 years. The guarantee bridges the gap: the Treasury makes a one-time adjustment at year 20 so the bond hits exactly 2x. This is why EE bonds behave like a 20-year zero-coupon investment with a known ~3.5% yield — but only if held the full term. Use the EE doubling calculator to see the top-up for any amount.
Frequently asked questions
What is a Series EE savings bond?
A Series EE bond is a US Treasury savings bond that earns a flat fixed rate for its first 20 years and is guaranteed to be worth at least double its purchase price at the 20-year mark. It is a predictable, long-term, low-risk savings product.
What is the EE bond 20-year doubling guarantee?
The Treasury guarantees that an EE bond held for 20 years will be worth at least twice what you paid. If the fixed rate alone has not doubled it by then, the Treasury makes a one-time adjustment at year 20 to reach exactly 2x. That is an effective annual return of about 3.5%.
Should I cash my EE bond before 20 years?
Usually not, if the goal is the guarantee. Before 20 years you only get the accrued fixed-rate interest, and the doubling top-up is forfeited. EE bonds reward patience; cashing at year 19 can leave a large amount on the table.
Are EE bonds better than I bonds?
It depends on your horizon. EE bonds give a known ~3.5%/yr if held 20 years; I bonds give inflation protection and more flexibility but a variable rate. See our I bond vs EE bond comparison. This is not investment advice.
Related
Not investment or tax advice. BondValue is an independent reference, not affiliated with the U.S. Treasury or TreasuryDirect. Savings bond rates reset every 6 months (on May 1 and November 1), and any value shown here is an estimate. Verify current rates and the exact penny value of your bonds at TreasuryDirect’s official Savings Bond Calculator. Consult a qualified professional before making financial decisions.
Last updated: 2026-06-21