What is the difference between EE bonds and I bonds?
2007-05-03 15:40:00 · 4 answers · asked by HRchick 4 in Business & Finance ➔ Investing
EE's have a fixed rate of return for the life of the bond, and are purchased at half face value. I bonds, purchased at full face value, have a fixed rate at purchase and an additional variable rate, changing (I think) every 6 months, which is linked to the rate of inflation. The web site below should be helpful.
2007-05-04 10:32:41 · answer #1 · answered by rhino9joe 5 · 0⤊ 0⤋
EE bonds are bought at half the face value, but the interest is based on the face value and fluxuates based on the t-bill. There is a guarentee it will hit its face value after a certain period, which has gotten longer. It stops gaining interest at 30 years.
The I-bond is bought at face value. There are two ways it grows. One way is there is a straight percentage. Then the I-bond is indexed to inflation. So the straight percentage could be 2% and inflation can be 3% making it a 5% bond for that period. There is a limit of how much you can put into I-bonds each year.
2007-05-04 16:36:59 · answer #2 · answered by gregory_dittman 7 · 0⤊ 0⤋
EE bonds are at a fixed earnings rate.
I bonds are at a variable earnings rate.
2007-05-04 00:31:17 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I bonds are inflation indexed. The rate will go up/down with the CPI (Inflation)
2007-05-03 22:45:34 · answer #4 · answered by Ben 3 · 0⤊ 0⤋