Series EE Bond
Series EE Bond is a saving bond issued by the U.S. Government at a discount from par value. These are non-callable and non-transferable bonds with a fixed rate of interest, which is set at the time of the purchase.
All interest earned on these bonds are exempt from state and local taxes, but federal tax must be paid, either annually or deferred. Interest is calculated on semi-annually basis, and paid at maturity. At maturity, Series EE bond will enter prolonged maturity period, and will earn interest in accordance to rates at the beginning of that extended maturity period.
There is no secondary market for this type of bonds, but the bonds can be redeemed. If not redeemed, Series EE bonds will continue to earn interest for 30 years.
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