I bond vs EE bond
The key difference: an I bond protects against inflation (its rate resets every 6 months; currently 4.26%) and is flexible, while an EE bond pays a flat fixed rate (2.40%) but is guaranteed to double in value at 20 years (about 3.5%/yr). Choose an I bond for inflation protection and shorter holds; choose an EE bond if you can hold the full 20 years for a known outcome. Both have a $10,000/year limit, a 12-month lock-up, a 3-month early-cash penalty, and are exempt from state and local tax.
Data as of May 2026.
I bond vs EE bond, side by side
| Feature | Series I bond | Series EE bond |
|---|---|---|
| Rate type | Composite: fixed + inflation (resets every 6 months) | Flat fixed rate for 20 years |
| Current rate | 4.26% composite | 2.40% fixed |
| Inflation protection | Yes — tracks CPI-U | No |
| Special guarantee | 0% floor (never loses nominal value) | Doubles in value at 20 years (~3.5%/yr) |
| Best holding period | 1-5+ years (flexible) | Exactly 20 years (for the double) |
| Annual purchase limit | $10,000 per person (electronic) | $10,000 per person (electronic) |
| Minimum hold | 12 months | 12 months |
| Early-cash penalty | 3 months interest if < 5 years | 3 months interest if < 5 years |
| Final maturity | 30 years | 30 years |
| Taxes | Federal-only; state/local exempt | Federal-only; state/local exempt |
When each one wins
Pick an I bond if…
- You want your savings to keep pace with inflation.
- You might need the money in 1–5 years.
- You value the 0% floor (no nominal loss).
Pick an EE bond if…
- You can lock the money away for 20 years.
- You want a guaranteed, known outcome (roughly double).
- You prefer simplicity over inflation tracking.
Frequently asked questions
Should I buy an I bond or an EE bond?
Buy an I bond if you want inflation protection and the flexibility to cash in a few years. Buy an EE bond if you can commit for the full 20 years and want a guaranteed, known outcome (your money roughly doubles, ~3.5%/yr). Many savers use I bonds for medium-term inflation hedging and EE bonds for a fixed 20-year goal. Not investment advice.
Which pays more right now, I bonds or EE bonds?
Right now the I bond composite rate (4.26%) is higher than the EE fixed rate (2.40%). But the EE bond's 20-year doubling guarantee is worth about 3.5%/yr for a full-term holder, which can beat the EE quoted rate. Compare your actual horizon, not just the headline rates.
Can I buy both I bonds and EE bonds?
Yes. The $10,000 annual electronic limit is separate for each series, so one person can buy up to $10,000 in I bonds and $10,000 in EE bonds in the same calendar year through TreasuryDirect.
Dig deeper
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