###### Editorial Note on [Subchapter A of Chapter II](/current/title-31/chapter-II/subchapter-A)

#### Editorial Note:

Nomenclature changes to subchapter A appear at [78 FR 60697](https://www.federalregister.gov/citation/78-FR-60697), Oct. 2, 2013.

#### § 316.8 Extended terms and yields for outstanding bonds.

(a) *General.* The terms *extended maturity period, second extended maturity period, third extended maturity period* and *fourth extended maturity period,* when used herein, refer to periods of 10 years or less after the original maturity dates during which owners may retain their bonds and continue to earn interest. No special action is required to take advantage of any extensions heretofore or herein granted. Series E bonds cease to accrue interest upon reaching final maturity.

(b) *Extended maturity periods* —

(1) *Bonds issued from May 1, 1941 through April 1, 1952.* Series E bonds with issue dates of May 1, 1941, through April 1, 1952, reached or will reach final maturity 40 years after their respective issue dates, as shown below.

| Issue dates—1st day of | Life of bonds yrs. | Final maturity dates—1st day of |
| --- | --- | --- |
| May 1941-Apr. 1952 | 40 | May 1981-Apr. 1992. |

(2) *Bonds issued from May 1, 1952 through November 1, 1965.* Bonds with issue dates of May 1, 1952, through November 1, 1965, will receive an additional extension of maturity ranging from 4 months to 2 years and 3 months, as shown below, so that these bonds will reach final maturity 40 years after their respective issue dates.

| Issue dates—lst day of | Previous maturities | | Previous maturity dates—1st day of |
| --- | --- | --- | --- |
| yrs. | mos. |
| May 1952-Jan. 1957 | 39 | 8 | Jan. 1992-Sept. 1996. |
| Feb. 1957-May 1959 | 38 | 11 | Jan. 1996-Apr. 1998. |
| Jun. 1959-Nov. 1965 | 37 | 9 | Mar. 1997-Aug. 2003. |

| Issue dates—1st day of | Additional extended maturity period | | Life of bonds—yrs. |
| --- | --- | --- | --- |
| yrs. | mos. |
| May 1952-Jan. 1957 | | 4 | 40 |
| Feb. 1957-May 1959 | 1 | 1 | 40 |
| Jun. 1959-Nov. 1965 | 2 | 3 | 40. |

| Issue dates—1st day of | Final maturity dates—1st day of |
| --- | --- |
| May 1952-Jan. 1957 | May 1992-Jan. 1997. |
| Feb. 1957-May 1959 | Feb. 1997-May 1999. |
| Jun. 1959-Nov. 1965 | June. 1999-Nov. 2005. |

(3) *Bonds issued from December 1, 1965 through June 1, 1980.* Bonds with issue dates of December 1, 1965, through June 1, 1980, will receive an additional extension of maturity ranging from 3 years to 5 years, as shown below, so that these bonds will reach final maturity 30 years after their respective issue dates.

| Issue dates—1st day of | Previous maturities | | Previous maturity dates—1st day of |
| --- | --- | --- | --- |
| yrs. | mos. |
| Dec. 1965-May 1969 | 27 | | Dec. 1992-May 1996. |
| June. 1969-Nov. 1973 | 25 | 10 | Apr. 1995-Sept. 1999. |
| Dec. 1973-Jun. 1980 | 25 | | Dec. 1998-Jun. 2005. |

| Issue dates—1st day of | Additional extended maturity period | | Life of bonds—yrs. |
| --- | --- | --- | --- |
| yrs. | mos. |
| Dec. 1965-May 1969 | 3 | | 30 |
| Jun. 1969-Nov. 1973 | 4 | 2 | 30 |
| Dec. 1973-Jun. 1980 | 5 | | 30 |

| Issue dates—1st day of | Final maturity dates—1st day of |
| --- | --- |
| Dec. 1965-May 1969 | Dec. 1995-May 1999. |
| Jun. 1969-Nov. 1973 | Jun. 1999-Nov. 2003. |
| Dec. 1973-Jun. 1980 | Dec. 2003-Jun. 2010. |

(c) *Guaranteed minimum investment yield* —

(1) *General.* Except as provided in [paragraph (c)(2)](/on/2024-09-17/title-31/section-316.8#p-316.8(c)(2)) of this section, the guaranteed minimum investment yields for outstanding Series E bonds are as follows:

(i) For Series E bonds that were in original or extended maturity periods prior to November 1, 1982, the guaranteed minimum investment yield was 8.5 percent per annum, compounded semiannually, effective for the period from the first semiannual interest accrual date on or after May 1, 1981, through the end of such periods, unless the bonds reached final maturity before November 1, 1981.[[3](#316.8-footnote-3)] For bonds that entered extensions, see [paragraphs (c)(1)(ii)](/on/2024-09-17/title-31/section-316.8#p-316.8(c)(1)(ii)) through [(c)(1)(iv)](/on/2024-09-17/title-31/section-316.8#p-316.8(c)(1)(iv)) of this section.

(ii) For Series E bonds that entered extended maturity periods during the period of November 1, 1982, through October 1, 1986, the guaranteed minimum yield was or is 7.5 percent per annum, compounded semiannually, for such periods, including bonds that entered into an extended maturity period, as shown below:

| Issue dates—1st day of— | Extension | Entered on 1st day of— |
| --- | --- | --- |
| Mar. 1953-Nov. 1957 | 3rd | Nov. 1982-Oct. 1986. |
| Feb. 1965-Dec. 1970 | 2nd | Nov. 1982-Oct. 1986. |
| Nov. 1977-June 1980 | 1st | Nov. 1982-June 1985. |

(iii) For Series E bonds that entered into extended maturity periods during the period of November 1, 1986, through February 1, 1993, the guaranteed minimum yield was or is 6 percent per annum, compounded semiannually, for such periods, including bonds that entered into an extended maturity period, as shown below:

| Issue dates—1st day of— | Extension4 | Entered on 1st day of— |
| --- | --- | --- |
| May 1952-Aug. 1953 | 4th (final)5 | Jan. 1992-Apr. 1993. |
| Dec. 1957-May 1965 | 3rd | Nov. 1986-Feb. 1993. |
| Dec. 1965-Feb. 1966 | 3rd (final) | Dec. 1992-Feb. 1993. |
| Jan. 1971-Feb. 1978 | 2nd | Nov. 1986-Feb. 1993. |
| | | |
| --- | --- | --- |
| 4 Interest for interest accrual periods of less than 6 months is prorated. | | |
| 5 All Series E bonds issued between May 1, 1941 and April 1, 1953, have matured and are no longer earning interest. | | |

(iv) For Series E bonds entering extended maturity periods on or after March 1, 1993, the guaranteed minimum yield is 4 percent per annum, compounded semiannually, or the guaranteed minimum investment yield in effect at the beginning of the period, including bonds that enter extended maturity periods, as shown below:[[6](#316.8-footnote-6)]

| Issue dates—1st day of— | Extension7 | Entered on 1st day of— |
| --- | --- | --- |
| Sep. 1953-May 1965 | 4th (final) | May 1993-Feb. 2003. |
| Jun. 1965-Nov. 1965 | 3rd | Mar. 1993-Aug. 1993. |
| Jun. 1965-Nov. 1965 | 4th (final) | Mar. 2003-Aug. 2003. |
| Mar. 1966-Feb. 1978 | 3rd (final) | Mar. 1993-Feb. 2003. |
| Mar. 1978-Jun. 1980 | 2nd | Mar. 1993-Jun. 1995 |
| Mar. 1978-Jun. 1980 | 3rd (final) | Mar. 2003-Jun. 2005. |
| | | |
| --- | --- | --- |
| 7 See footnote 2 above. | | |

(2) *Eleven-year bonus.* If a bond bearing an issue date of January 1, 1951, or thereafter, was held for the 11-year period from the first semianual interest accrual period that began on or after January 1, 1980, its guaranteed minimum investment yield for such period was increased by one-half of one percent per annum, compounded semiannually.

(d) *Market-based variable investment yield.* In order to be eligible for the market-based variable investment yield, Series E savings bonds had to be held at least five years beginning with the first semiannual interest accrual date occurring on or after November 1, 1982. The market-based variable investment yield shall be determined by the Secretary of the Treasury as follows:

(1) For each 6-month period, starting with the period beginning May 1, 1982, the average market yield on outstanding marketable Treasury securities with a remaining term to maturity of approximately 5 years during such period is determined. Such determination by the Secretary of the Treasury or his or her delegate shall be final and conclusive.

(2) For bonds which entered an extended maturity period prior to May 1, 1989, the market-based variable investment yield from the first semiannual interest accrual date occurring on or after November 1, 1982 to each semiannual interest accrual date occurring on or after November 1, 1987, will be 85 percent, rounded to the nearest one-fourth of one percent, of the arithmetic average of the market yield averages, as determined in accordance with [paragraph (d)(1)](/on/2024-09-17/title-31/section-316.8#p-316.8(d)(1)) of this section, for the appropriate number of 6-month periods involved, starting with the period beginning May 1, 1982.

(3) For bonds which entered an extended maturity period on or after May 1, 1989, the market-based variable investment yield from the first semiannual interest accrual date occurring on or after November 1, 1982 to each semiannual interest accrual date occurring on or after November 1, 1989, will be 85 pecent, rounded to the nearest one-hundredth of one percent, of the arithmetic average of the market yield averages, as determined in accordance with [paragraph (d)(1)](/on/2024-09-17/title-31/section-316.8#p-316.8(d)(1)) of this section, for the appropriate number of 6-month periods involved, starting with the period beginning May 1, 1982.

(e) *Determination of redemption values during any extended maturity period.* The redemption value of a bond on a given interest accrual date during any extended maturity period will be the higher of the value produced by using the applicable guaranteed minimum investment yield or the value produced by using the appropriate market-based variable investment yield. The calculation of these values is described below:

(1) *Guaranteed minimum investment yield and resulting values during an extended maturity period.* A bond has a guaranteed minimum investment yield for each of its extended maturity periods. The applicable guaranteed minimum investment yields for the current extended maturity period and any subsequent periods are specified in [paragraph (c)](/on/2024-09-17/title-31/section-316.8#p-316.8(c)) of this section. In order to determine the value of a bond during an extended maturity period, the value of the bond either at the end of the next preceding maturity period or when the guaranteed minimum investment yield last increased,[[8](#316.8-footnote-8)] whichever occurs later, is determined using the applicable guaranteed minimum investment yield. This value is then used as the base upon which interest accrues during the extended maturity period at the guaranteed minimum investment yield in effect for savings bonds at the beginning of that period. The resulting semiannual values are then compared with the corresponding values determined by using the applicable market-based variable investment yields.

(2) *Market-based variable investment yield and resulting values during an extended maturity period.* The market-based variable investment yield from the first semiannual interest accrual date occuring on or after November 1, 1982 to each semiannual interest accrual date occurring on or after November 1, 1987, is determined as specified in [paragraph (d)](/on/2024-09-17/title-31/section-316.8#p-316.8(d)) of this section. The value of a bond on its first seimannual interest accrual date occurring on or after November 1, 1982 is used as the base upon which interest accrues during an extended maturity period at the applicable market-based variable investment yield. If redeemed, the bond will receive the higher of the two values produced by using the applicable guaranteed minimum investment yield and the applicable market-based variable investment yield.

(f) *Market-based variable investment yields and tables of redemption values.* The market-based variable investment yields for bonds redeemed during each 6-month period, beginning on May 1 and November 1 of each year, are made available prior to each of those dates by the Bureau of the Fiscal Service, Parkersburg, West Virginia 26106-1328, accompanied by tables of the redemption values of bonds for the following 6 months, based on either the applicable market-based variable investment yields or guaranteed minimum investment yields.

[[57 FR 14276](https://www.federalregister.gov/citation/57-FR-14276), Apr. 17, 1992, as amended at [58 FR 60936](https://www.federalregister.gov/citation/58-FR-60936), [60937](https://www.federalregister.gov/citation/58-FR-60937), Nov. 18, 1993]

###### Footnotes - [316.8](/on/2024-09-17/title-31/section-316.8)

[[3](#316.8-footref-3)] Series E bonds issued from May 1, 1941, through October 1, 1941, had reached final maturity May 1, 1981, through October 1, 1981, before the 8.5 percent yield had become effective.

[[4 5](#316.8-footref-4%205)] [Reserved]

[[6](#316.8-footref-6)] Series E bonds with issue dates of July 1 and August 1, 1953, entered a final maturity period of 4 months on March 1, and April 1, 1993, respectively, and received a minimum investment yield of 6 percent per annum, compounded semiannually, for that period.

[[7](#316.8-footref-7)] [Reserved]

[[8](#316.8-footref-8)] The 11-year bonus was the last increase in the guaranteed minimum investment yield (see paragraph (b)(2)). Series E bonds which were eligible to receive this bonus received it on the first semiannual interest accrual date occuring on or after January 1, 1991.