Series EE Savings Bonds Rates

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redhounds
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Series EE Savings Bonds Rates

Post by redhounds »

When does the treasury announce the series EE savings bond rates for bonds issued on or after November 1st? Is this a rate that can be calculated in advanced based on available numbers (as one can do with I bonds) or is it just up to the treasury to decide what they want to offer? Thanks!
--Red
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Mel Lindauer
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Re: Series EE Savings Bonds Rates

Post by Mel Lindauer »

The EE rate will officially be announced on Nov. 1st.

As for the I Bond rate, which is also announced on May 1st and Nov. 1st, only the inflation adjustment portion of the composite rate can be figured out in advance; the fixed portion is a crap shoot, since there's no way to know what that rate will be in advance. However, at this point in time, you can figure that it will probably remain at 0% for the foreseeable future.
redhounds wrote:When does the treasury announce the series EE savings bond rates for bonds issued on or after November 1st? Is this a rate that can be calculated in advanced based on available numbers (as one can do with I bonds) or is it just up to the treasury to decide what they want to offer? Thanks!
Best Regards - Mel | | Semper Fi
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redhounds
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Re: Series EE Savings Bonds Rates

Post by redhounds »

Thanks!
--Red
Xanadu
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Re: Series EE Savings Bonds Rates

Post by Xanadu »

Mel Lindauer wrote: As for the I Bond rate, which is also announced on May 1st and Nov. 1st, only the inflation adjustment portion of the composite rate can be figured out in advance...
Has anyone figured out what the new inflation adjustment portion will be yet?
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Hector
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Re: Series EE Savings Bonds Rates

Post by Hector »

Xanadu wrote:
Mel Lindauer wrote: As for the I Bond rate, which is also announced on May 1st and Nov. 1st, only the inflation adjustment portion of the composite rate can be figured out in advance...
Has anyone figured out what the new inflation adjustment portion will be yet?
September inflation data would come out after a week or so and we would know for sure, but based on August inflation data, it would be 1.14%.
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#Cruncher
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Re: Series EE Savings Bonds Rates

Post by #Cruncher »

redhounds wrote:Is [the EE savings bond rate] a rate that can be calculated in advance ... ?
I wouldn't say it can be calculated in advance of its Nov 1st release; but it looks like it can be guesstimated. According to the How does Treasury decide on the interest rate? section on the TreasuryDirect May 2005 and Later EE Bond Rates and Terms web page:
We determine the fixed interest rate for EE Bonds issued after May 2005 by
  • taking the market yields of the 10-year Treasury Note, and
  • adjusting that by the value of components unique to savings bonds, including options that permit early redemption (redemption after the first 12 months) and tax deferral.
Based on this and the recent history of 10-year Treasury Note yields and EE bond rates, I conclude in my post, Re: When To Buy I Bonds and EE Bonds - Now or Wait?, that the rate to be announced November 1st will likely be much higher than the current 0.2% rate. My guess would be 1.2%.
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redhounds
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Re: Series EE Savings Bonds Rates

Post by redhounds »

If your guess is close, it makes my planned purchase before the end of the year an even easier choice. Fingers crossed. Thanks for the link to the very informative description of how you came up with your guess!
--Red
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