|
EE Bond
|
I Bond
|
| Features |
Issued
at 50% of face
value. (A $100 EE Bond costs $50.) |
Issued
at face value. (A $100 I Bond costs $100.) |
| Offered
in 4 denominations ($100, $200, $500, $1,000). |
Offered in 6
denominations ($50, $75, $100, $200, $500, $1,000). |
| $10,000
face value
annual purchase limit per Social Security Number. |
$5,000
annual purchase limit per Social Security Number. |
| Interest |
Bonds
issued on or after May 1, 2005: Fixed Rate of Interest applies for the
life of the Bond |
Interest
is based on Consumer Price Index. |
| Rates
announced every
May 1 and November 1. |
Rates
announced every May 1 and November 1. |
| Guaranteed
to reach face
value in 20 years. |
Earnings
will fluctuate with the economy |
| Increases
in value monthly and interest compounds semiannually. |
Generally increases in
value monthly and interest compounds semiannually. |
| Interest
is paid when the bond is redeemed. |
Interest is paid when
the bond is redeemed. |
| Earn
interest for up to
30 years. |
Earn
interest for up to 30 years. |
| Cashing |
Can
be cashed any time
after 12 months. |
Same
as EE. |
| A
3-month interest
penalty applies to bonds redeemed during the first 5 years. |
Same
as EE. |
| Financial
institution
reports interest earnings on IRS form 1099-INT. |
Same
as EE. |
| Tax
Benefits |
Savings
bonds are exempt
from state and local income taxes. |
Same
as EE. |
| Eligible
for tax benefits upon redemption when used for qualified education
expenses. |
Same
as EE. |
| Exchange |
Cannot
be exchanged for
any other series of savings bonds. |
Cannot be exchanged for
any other series of savings bonds. |
