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Author: foobar73 Big red star, 1000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: Re: EE's re-adjust? Date: 5/10/2002 11:23 AM
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Do the rates for EE bonds adjust twice a year?

Yes.

Here is a clarification: http://www.savingsbonds.gov/sav/savrtfaq.htm

3.1) How did Treasury set the new rate?

Savings bonds will earn the new higher rates right from the start. The rate is 90 percent of the average 5-year Treasury market yields for the preceding six months. Treasury will announce a savings bond rate each May 1 and November 1. The rates announced each May and November are the annual rates that apply to bonds for that six month earning period. For example, the six month earning period for a bond issued in May is from May through October; for a bond issued in June, it's June through November. The rate that's announced is the rate bonds will earn during the 6-month earning period.

3.2) How is interest added to savings bonds after May 1, 1997?

New EE bonds will increase in value every month. The rate that Treasury announces each May and November will be applied to a bond for the 6-month earning period.
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