How to Find US Savings Bond Interest Rates

US Savings Bonds

What once was considered a valued instrument to invest your money in might not be so plausible any more in today's economic environment. The way interest is being paid on US savings bonds has changed. Before purchasing these bonds it is imperative you find the interest rates so you can make an informed investment decision. Here's how...

Things You'll Need

• Internet
• Phone

Instructions

1. Since May 2nd 2005 the US government has altered the way it pays interest on it EE and I series bonds. No longer do these interest rates fluctuate with the times. The variable interest rate is now defunct on US savings bonds.

2. There is an easy way you can find out the interest rates on these bonds. A great resource on the internet is - http://www.treasurydirect.gov/. This site not only gives you the interest rates, but every conceivable issue which may be related to US savings bonds.

3. The most important thing to know about current US savings bonds is the interest is paid for 30 years. A more crucial aspect you should know before making a purchase is whatever interest rate you buy the bond at that days interest rate is the set interest rate for the life of the bond. Currently as of this writing the interest rate for EE Bonds is - 1.20%

4. An example of today's US Bonds future earnings - You buy a $50 savings bond today for $25. The rule of 72 dictates how many years it would take your money to double. 72 / 1.20 = 60 This means to equal the face value of the bond ($50) it would take 60 years. The EE Bond interest rate ends after thirty years. The bond would be only be worth $37.50 after thirty years. However, the government guarantees an adjustment if needed so the EE bond will mature at full face value after 20 years.

Tips & Warnings

• Another way to find out interest rates on US Bonds is to call 1-800-US-BONDS.

Resources

• Treasury Direct