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Saving Bonds

EE/E Savings Bonds

Series EE savings bonds are safe, low-risk savings products that pay interest based on current market rates for up to 30 years for bonds purchased May 1997 through April 30, 2005**. Savings bonds will remain available for purchase as electronic issues through TreasuryDirect. To learn more about electronic savings through TreasuryDirect, visit http://www.treasurydirect.gov. Savings Bonds are no longer available for purchase through the credit union or any other financial institution, but you can cash in your bonds through the credit union. As a TreasuryDirect account holder, you can purchase, manage, and redeem EE Bonds directly through the Treasury link above.

**Series EE bonds purchased May 2005 and after will earn a fixed rate of return. Use EE Bonds to: Finance education; Supplement retirement income; Give as a gift.

For complete details, visit: http://www.treasurydirect.gov/

Rates & Terms

  • EE/E Bonds you purchased between May 1997 and April 30, 2005, earn a variable market-based rate of return.
  • Series EE Bonds issue dated May 2005 and after will earn a fixed rate of interest.
  • They are an accrual-type security, which means interest is added to the bond monthly and paid when you cash in the bond.
  • Paper bonds are sold at half the face value; i.e., you pay $25 for a $50 bond.
  • Electronic bonds purchased via TreasuryDirect are sold at face value; i.e., you pay $25 for a $25 bond.

Redemption Information

  • Minimum term of ownership: 1 year
  • Interest-earning period: 30 years
  • Early redemption penalties:
    • Before 5 years, forfeit 3 most recent months’ interest
    • After 5 years, no penalty

Tax Considerations

  • Interest earnings are exempt from State and local income taxes, but are subject to Federal, State, and local estate, inheritance, gift, and other excise taxes.
  • Interest earnings are subject to Federal income tax.
  • Interest earnings may be excluded from Federal income tax when bonds are used to finance education (see education tax exclusions). Restrictions apply.

For complete details, visit: http://www.treasurydirect.gov/

I Bonds

I Bonds are a low-risk, liquid savings product. While you own them, they earn interest and protect you from inflation. You may purchase I Bonds via TreasuryDirect. Savings Bonds are no longer available for purchase through the credit union or any other financial institution, but you can cash in your bonds through the credit union. As a TreasuryDirect account holder, you can purchase, manage, and redeem I Bonds directly from the Treasury Direct web site. Use I Bonds to: Finance education; Supplement retirement income; Give as a gift.

For complete details, visit: http://www.treasurydirect.gov/

Rates & Terms

  • I Bonds have an annual interest rate that reflects the combined effects of a fixed rate and a semiannual inflation rate. They are an accrual-type security. Interest is added to the bond monthly and is paid when you cash the bond.
  • I Bonds are sold at face value; i.e., you pay $50 for a $50 bond.

Redemption Information

  • Minimum term of ownership: 1 year
  • Interest-earning period: 30 years
  • Early redemption penalties:
  • Before 5 years, forfeit 3 most recent months’ interest
  • After 5 years, no penalty

Tax Considerations

  • Interest earnings are exempt from State and local income taxes, but are subject to Federal, State, and local estate, inheritance, gift, and other excise taxes.
  • Interest earnings are subject to Federal income tax.
  • Interest earnings may be excluded from Federal income tax when bonds are used to finance education (see education tax exclusions). Restrictions apply.

For complete details, visit: http://www.treasurydirect.gov/

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