Fixed Rates Coming to Series EE Savings Bonds
WASHINGTON - The Series EE savings bond will have fixed interest rates for the life of the bond starting May 1. Interest rates on the Series EE bonds currently change every six months. The new fixed rate, which will be whatever the interest rate is in effect at the time of purchase, will not affect current Series EE bond holders or those purchased before May 1. Of the $8 billion in savings bonds sold as of Sept. 30, 2004, $3.1 billion were Series EE bonds, according to the U.S. Department of Treasury. The bonds have been on a variable rate cycle since 1982. Treasury has said the change will allow the government to save money in a rising interest-rate environment and reduce payments on the national debt.