# Understanding Series EE Savings Bonds: Definition, Benefits, and Maturity

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## What Is a Series EE Bond?

The Series EE Bond (often referred to as a "Patriot Bond") is a non-marketable, interest-bearing U.S. government savings bond. These bonds are guaranteed to at least double in value over the typical 20-year initial term. Some Series EE bonds have total interest-paying lives that extend beyond the original [maturity date](https://www.investopedia.com/terms/m/maturitydate.asp), up to 30 years from issuance. Coupon rates for Series EE Bonds are determined at the time of issuance and are based on the percentage of the long-term Treasury rates.

The key benefits include tax-exempt interest and the security of a government-backed investment. There are purchase limits associated with the Series EE bond, which is available only through the U.S. Treasury.

### Key Takeaways

*   Series EE Bonds are a type of U.S. government savings bond known for their low risk and guarantee to double in value over a 20-year period, providing a secure investment option.
*   Purchases of Series EE Bonds are limited to a minimum investment of $25 and a maximum purchase cap of $10,000 per calendar year, offering investment scalability.
*   Interest from Series EE Bonds is exempt from state and local taxes, though it is subject to federal taxes upon maturity or redemption, which can influence investors' tax strategies.
*   These bonds are available to U.S. citizens, official residents, minors, and U.S. government employees, ensuring broad accessibility and potential use in diverse financial portfolios.

## Understanding the Mechanics of Series EE Bonds

Along with the [Series I bond](https://www.investopedia.com/terms/s/seriesibond.asp), the Series EE bond is one of the two types of savings bonds issued by the US Treasury. Series EE bonds cannot be bought or sold in the open market and are hence classified as [non-marketable securities](https://www.investopedia.com/terms/n/non-marketable_securities.asp).

Series EE bonds issued after May 2005 are assigned semi-annual fixed coupon rates on May 1 and November 1. The rates apply to all issuances for the ensuing six months. Bonds issued after each date increase in value monthly, but interest payments are handed out semiannually.

Series EE bonds are considered ultra-safe, low-risk investments, [whose interest is typically exempt](https://www.investopedia.com/high-yield-interest-impact-on-taxes-8414834) from state and local taxes. However, they are subject to federal taxes, but only in the year in which the bond matures or is redeemed. EE Bonds may be purchased by U.S. citizens, official U.S. residents, minors, and all U.S. government employees—regardless of their citizenship status.

## Unique Features of Series EE Bonds

After the Sept. 11, 2001, attacks, paper EE bonds were rebranded as "Patriot Bonds." These bonds are the same as regular paper EE Bonds but include the "Patriot Bond" label on certificates bought after Dec. 10, 2001. This label is located between the SSN and the issue date.  

> **Important**
>
> Series EE bonds don't need to be reissued to correct small typographical errors in names, addresses, or Social Security numbers.

## Eligibility and Investment Limits for Series EE Bonds

The minimum investment for EE bonds is $25, and investors can buy up to $10,000 per year. Bondholders must keep these investments for at least twelve months before redeeming them. If bonds are redeemed within five years, three months of interest is lost. EE bonds earn interest for up to 30 years, so holding them longer increases their value.

Paper bonds were sold at half their par value. In contrast, electronic bonds from TreasuryDirect are bought at full [face value](https://www.investopedia.com/terms/f/facevalue.asp). These bonds are still guaranteed to double in value after 20 years, earning interest similarly to paper EE bonds.