Series EE Savings Bonds.

In plain English

Series EE savings bonds are savings bonds issued by the U.S. Treasury and bought directly through TreasuryDirect. They earn a fixed interest rate set at the time of purchase, and the Treasury guarantees that an electronic EE bond will be worth at least double its purchase price if you hold it for 20 years. You can cash one after 12 months, but redeeming before 5 years costs you the last 3 months of interest. The interest is exempt from state and local tax, and federal tax can be deferred until you cash the bond.

01Why it matters

An EE bond is one of the safest places to park money you will not touch for two decades, and the doubling guarantee gives you a known floor that few other safe investments offer.

02The math, step by step

Say you buy a 1,000 dollar electronic EE bond and hold it the full 20 years. Because of the Treasury's guarantee, it will be worth at least 2,000 dollars at that point, even if the stated fixed rate was low. The fixed rate for EE bonds issued between May 1, 2026 and October 31, 2026 is 2.40 percent, which sets how the bond grows in the meantime, and the Treasury resets that rate every six months for new bonds. If you cash out at year 3 instead, you would forfeit the final 3 months of interest as an early-redemption penalty.

03What this is NOT

04Receipts

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