So, EE savings bonds sold 97-05 have a variable interest rate set every 6 months at 90% of the previous 6 months' average Treasury yield.
EE savings bonds issued after 05, to quote the Treasury page, "We determine the fixed interest rate for EE Bonds by taking market yields and adjusting them to account for the value of components unique to savings bonds, including options that permit early redemption (redemption after the first 12 months) and tax deferral."
When the change was made, that meant a 3.5% rate on new EE's vs ~2.6% on '97-'05 ones. However, the new methodology fell through the floor over the next few years and has pretty consistently been much worse. The last few years it's been at a ludicrous 0.1% vs a current ~1.68% (it varies a few tenths bond-to-bond, which I don't know the explanation for) on '97-'05 ones.
TL;DR - y'all wild, Treasury
Submitted December 06, 2017 at 03:26AM by JLeeSaxon http://ift.tt/2zTxKWI
