EE bonds will increase in value every month instead of every six months.
Interest is compounded semiannually.
A 3-month interest penalty will apply to bonds cashed before five years. For example, if you buy a bond in May 1997 and cash it 24 months later in May 1999, you get your original investment back plus 21 months of interest. The value of the bond would be based on the announced rates applied over the 21-month period from May 1997 through February 1999. Series EE bonds now earn interest much like other savings products available in the marketplace. Easy to Understand Rates announced each May and November are the annual rates that apply to bonds for those 6-month earning periods.