U.S. Series EE Bonds are savings bonds issued by the U.S. Department of the Treasury. They are considered a low-risk savings option and are backed by the full faith and credit of the U.S. government. They can be purchased in denominations of $25 to $10,000 and accrue interest until they reach their face value (usually $50 or $100) after a certain number of years.
The interest rate on Series EE Bonds is determined by the Treasury Department and is based on the prevailing market interest rates. They are issued at a discount to face value and the interest is paid at maturity or can be accrued till 30 years. The interest earned on Series EE Bonds is subject to federal income tax, but may be tax-free if used for certain educational expenses.
EE Bonds are issued electronically, and can be purchased online via TreasuryDirect or via financial institution. They are a safe, long-term savings option for those looking to save for future expenses such as education or retirement.