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Author: questionthefool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35367  
Subject: Series EE Date: 11/1/2001 11:07 PM
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The series EE interest rate is 4.04%. The savings bond web site says that you buy it half the face value. I do not know much about EE. Do they calculate the interest on what I pay for it or on the face value?

Which is a better deal now for deferred interest bond? I or EE? Thanks.
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Author: pjh83 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2344 of 35367
Subject: Re: Series EE Date: 11/2/2001 6:20 AM
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There ain't no free lunch, so you will get the interest rate on the current value of the bond, which is half the face value for a new EE. As you hold the bond its value will creep up and so will the interest payments.

As for I versus EE, the I's pay slightly better right now. For an informed decision you will have to look in your crystal ball to decide if there is inflation or deflation in your future life. Or you may just want to hold some of both.

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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: 2345 of 35367
Subject: Re: Series EE Date: 11/2/2001 9:33 AM
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The series EE interest rate is 4.04%. The savings bond web site says that you buy it half the face value. I do not know much about EE. Do they calculate the interest on what I pay for it or on the face value?

The face value on the bond is essentially meaningless, except that the government promises to pay you that amount after 17 years. That is, if after 17 years the value of the bond hasn't caught up to the face value, you are guaranteed to get that face value anyways.

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