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A friend of mine has some older EE savings bonds (circa 1986/87 -- 12 year maturity). Reading through the web site, it seems like they should currently be providing a *minimum* of 4% at any time (guaranteed minimum rates). From the site, this reads as follows:

Guaranteed Minimum Rates:

Guaranteed minimum rates were set at the time a bond was issued. This initial minimum rate applies for a bond's original maturity period and is subject to change as a bond enters an extended maturity period. When a bond enters an extended maturity period, its guaranteed minimum rate (for the new period) becomes the minimum in effect at that time for new issues. The guaranteed minimum rates are 4% (for bonds issued March 1993 - April 1995), 4% (for bonds entering an extended maturity period since March 1993), 6% (for bonds issued or entering an extended maturity period between November 1986 - February 1993), and 7.5% (for bonds issued or extended from November 1982 - October 1986).

Currently, they are actually paying him around 2.9%. Does anyone know why they would be paying below the stated minimum?

Thanks for any information you can provide.

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