Series E and Series EE Bonds

Tellers help customers purchase or redeem Series E or Series EE Bonds. Series EE Bonds are purchased at half their face value and grow in value over a period of years until they are redeemable at face value. (Check for the current maturity period.) Series EE Bonds are purchased at half their face value as follows:

Denomination (face value)	Issue Price
$50	$25.00
75	37.50
100	50.00
200	100.00
500	250.00
1,000	500.00
5,000	2,500.00
10,000	5,000.00

The interest rate is pegged to competitive money rates and is compounded semiannually, if the bond is held at least 5 years. (Check for the current rate.) A bond becomes eligible for payment after 6 months, at which time the redemption value yields 4 percent interest. The value increases monthly for 30 months and then semiannually thereafter until maturity.

Benefits of bond ownership include exemption from state and local income and personal property taxes and replacement if the bonds are lost, stolen, or destroyed. Owners should retain records of the bond serial numbers, issue dates, and owner name(s) and addresses) separately from the bonds for reporting purposes in the event of loss.

To purchase a bond, the customer must fill out a bond application (Form PD 4882 of the Department of the Treasury). Bonds may be registered in the names of individuals, adult or minor, as single ownership, co-ownership (name or names), or beneficiary payable on death (POD).

Series E Bonds were the predecessors of the Series EE Bonds. Their rate is 6 percent for those held to maturity. Series E Bonds have been granted extended maturity dates, however, and these yield

6.5 percent per annum, compounded annually.

Series E Bonds were issued in face amounts of $25, $50, $75,$100, $200, $500, $1,000, and $10,000. The corresponding issuing prices were $18.75, $37.50, $56.25, $75, $150, $375, $750, and $7,500. Maturity for the bonds occurs 5 years from the date of issue.

Your bank will have redemption value charts for both Series E and Series EE Bonds.

Issuing Series EE Bonds

To issue Series EE Bonds, ask the customer to complete the application and present it and payment for the bond. You then remove the appropriate bond(s) from the bond inventory and list their serial numbers on the face of the application. Then type the Social Security number and customer name and address on the face of the bond. If the customer is a co-owner, type the word "OR" followed by the co-owner's name; if a beneficiary, type "POD" followed by the beneficiary's name. Also stamp the bond with the Bond Issue Stamp.

Redeeming Series E or EE Bonds

To redeem a bond, the customer must have held it at least 6 months.

The person presenting the bond for cash must sign the bond and be clearly identified as the owner or co-owner. If the presenter is the beneficiary, the death certificate of the deceased owner must also be presented. Stamp the bond with the BOND PAID stamp and enter the redemption value (from your redemption value chart) on the bond.

Series E and Series EE Bonds

Send mail to Bonnie Harmon with questions or comments about this web site. Last modified: April 04, 2002

Send mail to Bonnie Harmon with questions or comments about this web site.
Last modified: April 04, 2002