SavingsBonds.com Announces New Interest Rates For Series EE and I Savings Bonds

SPRING LAKE, N.J., May 2, 2019 /PRNewswire-PRWeb/ -- SavingsBonds.com has posted the latest savings bond interest rates on their redesigned website. Series EE Savings Bonds issued May 2019 through October 2019 will earn an annual fixed rate of 0.10%. Series I Savings Bonds will earn a composite rate of 1.90% for bonds issued during that same period. The fixed rate portion of an I Bond is set at .50%. The inflation (or variable) rate portion of an I Bond is set at 1.40% until October 2019.

U.S. Savings Bond interest rates are set each May 1 and November 1. Interest accrues monthly and compounds semiannually. Both bond series have an interest-bearing life of 30 years.

"One of the biggest mistakes bond owners make is assuming that their bonds are earning these new rates. Many older (paper) bonds are likely earning much higher interest rates, some at nearly 6%," according to Jackie Brahney, marketing director at SavingsBonds.com.

To learn interest rate performance use a complimentary savings bond calculator, which also provides cash in values and detailed financial information such as total amount of interest earned, maturity dates and potential tax implications.

Not All Savings Bonds Perform The Same. For older bonds (not earning a fixed rate) the semi-annual interest rates announced every 6 months (May and November) are combined with all the prior years interest rates to create the new overall yield, based on the formulae in effect for each bond.

For EE Bonds issued since May 2005, the rate in effect when the bond was issued will remain the same for at least 20 years, which is when the bond reaches its initial maturity. At that time, the bond will be worth at least double the purchase price. Bonds will continue to earn interest at their original fixed rate for an additional 10 years (until final maturity), unless new rates are announced prior to the bond entering into its last 10-year period.

EE Bonds issued prior to May 2005 will earn interest based on the numerous rules, rates and regulations in effect at the time the bond was issued. Rates often vary greatly and are tied to market conditions.

All series E Bonds have reached final maturity, are no longer earning any interest and should be redeemed.

Series I Bonds have been issued since September 1998. The rate is comprised of a fixed rate (some offering an impressive 3.60%), which remains the same for the 30-year life of the bond, and an inflation (or variable) rate, which often changes every six months and is tied to the Consumer Price Index For Urban Consumer (CPI-U).

Understanding savings bond interest rates can be daunting due to the various rules and rates that affect each bond. To eliminate confusion and easily determine interest rate performance, use a complimentary savings bond calculator for bonds dating back to 1941. Investors can also review a Savings Bond Inventory Report, which pretty much explains everything they need to know about their savings bonds financial status.

About SavingsBonds.com:
SavingsBonds.com is an online financial bond management company providing essential U.S. Savings Bond information since 1992. For over 26 years, bond experts have created various consumer programs, tools and services not offered elsewhere, including an online complimentary savings bond calculator, providing cash in values with important financial information presented on a personalized, color-coded Savings Bond Inventory Report. Unique savings bond management services include signature monthly summary emailed Savings Bond Statements, which help bond owners maximize their investment, avoid losing money and paying unnecessary taxes.

SOURCE SavingsBonds.com