EE & I bonds
I believe both these bonds pay semi-annual interest. However, if you cash in one of them, do they get interest up to the time you cash in or do you forfiet the interest at midterm?
ex: bonds next accrual is 5/2008. if you cash in now do you get the interest from Nov. (last accrual) to today or do you forfiet the interest from Nov 07 to may 08?
Thanks,
Douglas
Permalink Submitted by William Tuttle on Sat, 2008-04-05 01:23
Both EE and I Bonds “compound” interest semi-annual.
However, I Bonds and EE bonds issued after May 1997 earn interest on the 1st of each month.
EE Bonds issued before May 1997 are a little tricky and depend on when they were issued.
EE Bonds issued March 1993 – April 1995 earn interest on the 1st of each month for the 1st five years and on the 1st day of every sixth month anniversary of issuance after five years.
All other EE Bonds issued before May 1997 earn interest on the 1st day of every sixth month anniversary of issuance.
If you redeem EE bonds that have a six month earning term during the term, you will NOT receive any interest for that term.
All savings bonds lose three months of interest if redeemed before five years.
All of this and much more on savings bonds is available on the TreasuryDirect web site.