The standard government bond rate of return hinges on the type of bond that the individual is in possession. The series E bonds bought before 1980 carried a seventy-five percent face value. The interest accrued over the years is the same as the series EE bonds because the series E bonds are no more. The rate of return now is set at 7.5% of the face value and any necessary taxes which deferred will be an issue for the federal tax forms in the year of sale. The maturity period is at nine years and seven months before the bonds are redeemable.
The series EE savings bond issued November 1, 1986 can earn a six percent rate of interest upon the twelfth anniversary and is contingent on the current interest rates at the time of sale. As the market fluctuates the interest rate of return can go no lower than four percent of the face value. The series EE savings bond issued March 1, 1993 can earn four percent over a five year period so there is some question about culpability when the economy is not doing as well as it could.
Series EE savings bond issued May 1, 1995 through April 30, 1997 are contingent on the market base rates through the maturity date. This series is to hold for up to seventeen years and the interest on the face value will accumulate for the entire duration of the savings bond at a rate of 4.1%. Again this is contingent on the market yields at the time of transference of the maturity of the savings bond.
The series EE savings bond issued May 1, 1997 through April 30, 2003 are about the same as the predecessor except with a few changes that are in addition to the rules. The series EE savings bond remains without the ability to cash for the duration of the entire first year. A three-month interest penalty is attachable for all series EE savings bonds that are redeemable within a five-year period because these carry for a period of seventeen years before reaching maturing.
These are only a few examples of the changes that occur each year and not just with the series EE savings bonds but with all the different treasury bonds that are still in existence today. Keeping tabs on all the current government rules and regulations is a good idea to avoid difficulties down the road.