What an EE bond is
Series EE bonds are US Treasury savings bonds with a fixed rate, bought electronically through TreasuryDirect. Bonds issued from May 1 to October 31, 2026 earn 2.40%. The rules that shape their value:
| Rule | TreasuryDirect |
|---|---|
| Rate | 2.40%, fixed, for bonds issued May 1 to October 31, 2026 |
| Doubling guarantee | the bond will double in value in 20 years; Treasury adds money at 20 years if needed |
| Earliest cash-in | after 12 months |
| Before 5 years | you lose the last 3 months of interest |
| Earns interest for | 30 years, unless cashed earlier |
| Purchase limit | $10,000 a calendar year per Social Security number |
What the guarantee is worth
At 2.40% compounded twice a year, $10,000 grows to $16,115 in 20 years. The guarantee lifts it to $20,000, so a bond held exactly 20 years earns the equivalent of 3.53% a year. Cashed earlier, it earns only its stated rate.
| Cashed after | Value at 2.40% | Guarantee applies |
|---|---|---|
| 1 year | $10,241, less the last 3 months of interest | no |
| 5 years | $11,267 | no |
| 10 years | $12,694 | no |
| 19 years | $15,735 | no |
| 20 years | $20,000 | yes: $3,885 added by Treasury |
The step at year 20 is the whole point: a bond cashed a year early gives up the top-up. After 20 years the bond keeps earning its fixed rate on the doubled value until year 30. The compound interest calculator reproduces the curve for any rate, and the savings goal calculator shows what a monthly amount reaches by a target date instead.
EE bonds or I bonds
| EE bonds | I bonds | |
|---|---|---|
| Rate, bonds issued May to October 2026 | 2.40% fixed | 4.26% composite, reset every 6 months |
| Built-in protection | doubles in 20 years | follows inflation, cannot go below zero |
| Yearly limit | $10,000 | $10,000, separate |
| 12-month lock, 3-month penalty before 5 years | yes | yes |
The two limits are separate, so a saver can hold both. The guide I bonds explained covers how the I bond rate is built.
Taxes
EE and I bonds are taxed the same way: federal income tax on the interest, no state or local income tax, a choice of reporting yearly or at redemption, and a possible exclusion for qualified higher education expenses. The guide I bonds explained sets these out once; TreasuryDirect adds for EE bonds that federal estate, gift and excise taxes and state estate or inheritance taxes apply.
This guide reports the TreasuryDirect figures for EE bonds issued May 1 to October 31, 2026; the rate for later bonds is announced on November 1.
Frequently asked questions
What is the EE bond rate now?
TreasuryDirect lists 2.40 percent for EE bonds issued from May 1, 2026 to October 31, 2026. The rate is fixed for the bond, unlike the I bond rate that changes with inflation every six months.
Do EE bonds really double in 20 years?
Yes, by guarantee. TreasuryDirect says it guarantees that an EE bond will double in value in 20 years, and that if the interest has not doubled it by then, Treasury adds money at 20 years to make that happen. At 2.40 percent the interest alone would not get there, so the top-up is what makes the 20-year hold pay; doubling in 20 years is equivalent to about 3.53 percent a year.
How much can I buy?
Up to $10,000 in EE bonds per calendar year per Social Security number, per TreasuryDirect. The I bond limit of $10,000 is separate, so one person can put $20,000 a year into the two series combined.
When can I cash an EE bond?
After 12 months. Cashing in before 5 years costs the last 3 months of interest. The bond keeps earning interest for 30 years unless cashed earlier, but the doubling guarantee applies only to a bond held for 20 years.
Are EE bonds taxable?
The interest is subject to federal income tax but not state or local income tax. TreasuryDirect adds that federal estate, gift and excise taxes and state estate or inheritance taxes apply, and that if you use the money for qualified higher education expenses you may not owe tax on the earnings.
Sources
- TreasuryDirect: EE bonds (2.40 percent for bonds issued May 1, 2026 to October 31, 2026; guaranteed to double in value in 20 years, with Treasury adding money at 20 years if needed; interest for 30 years; cash in after 12 months; lose the last 3 months of interest before 5 years; up to $10,000 a calendar year per Social Security number; federal tax but not state or local; estate, gift and excise taxes; education exclusion)
- TreasuryDirect: I bond interest rates (savings bond interest compounded semiannually, added to the principal twice a year)
General information based on the sources above, not tax, legal or financial advice.