Sam <Sam[at]nospammindspring.com> writes:

- quote -

First, the rate is 3.53%, not 4%. Second, you have to
hold the bond for at least 20 years for the guarantee
to have any value. This is because the guarantee is
implemented as a one-time adjustment on the 20th anniversary
date of the bond. If on the 20th anniversary the bond hasn't
doubled in value, the Treasury will make a bonus interest
accrual on the bond in whatever amount is needed to bring
the bond up to double its purchase value.

So if you hold for 19 years and 364 days you only get the
actual interest accrued so far, no matter how little it is.

- quote -

I believe it changes on 1 May 2005. I'm pretty sure it's still
17 years until then.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

Does anyone know if bonds received as a promotional offer count
toward the $30,000 ($60,000 face) calendar year purchase limit for
an individual?

The promotional offer would be bonds received in exchange for
proof of purchase labels from a company. E.g. a $50 bond for
10 proof of purchase labels.

Also, after seeing the press release that EE Bonds will receive
a fixed interest rate for the life of the Bond if purchased May 1,
2005 or later, would it be best to purchase any Bonds for this
year before May 1? Does anyone know more of the details about
this change?

It sounds like the Bonds purchased after May 1 will still be
guaranteed to double in 20 years(i.e. a rate of 4%) but the
rate won't change with the 5 year Treasury Notes.

And when did the length of the period of time for the Bonds
to double in value change? It used to be 17 years. Was it when
they upped the purchase limit on EE Bonds from $15,000 to $30,000
which I think was sometime in 2003?

Thanks for any insight on the current EE Bonds and whatever the
new structure for EE Bonds will be after May 1.

Sam