Here's my understanding of paper EE bonds.
There are now electronic EE bonds, which may have some differences.
The purchase price is 1/2 of the face value.
They have an original maturing period when you can start cashing them in and a final maturity period when you stop getting interest.
The original maturity date for Series EE bonds issued from 1980 to 2005 - were 11-18 years. After May 2005 it changed to 20 years.
They are guaranteed to reach face value in 20 years. That would be 2%/year compounded semi-annually.
The rate that Treasury announces each May and November will be applied for the six-month earning period and will be 85 percent of the average yields on 5-year Treasury securities for the preceding six months.
The govt will add money if the interest rate, which varies from year to year, does face value in 20 years.
Mine were worth a little more than double the face value at 30 years.
That's an average of 4%. compounded semi-annually.
The best advice I found was on Reddit.
"Cash them out after 20 years and get out of that poorly paying convoluted mess."
Prior to 2005 EE bonds had shorter original maturity dates (11-18 yrs), when you could cash them in for face value.
ORIGINAL MATURITY PERIODS:
There are 2 forms of bonds paper and electronic
Paper bond Calculator
