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BeckyAndKristinsMa
8-6-04, 11:59am
They are EE bonds, from 1999 and older.

I want to cash in the ones earning the lowest interest, but I'm confused. Do I go by Rate or the Yield? Some of the ones with the lowest rate have high yields, and some with higher rates have lower yield, and I don't understand this...

So, do I pull out the ones with the lowest Rate or the lowest Yield?

Sorry, I'm sure it's a dumb question... noclue.gif
BlueTDimly
8-6-04, 12:21pm
Looks like this may help:
http://www.publicdebt.treas.gov/sav/savnewee.htm

QUOTE
Series EE bonds earn the short-term rates for the first five years. The short-term rate is 85% of the average of six-month Treasury security yields. A new rate is announced each May 1 and November 1. The May 1 rate reflects market yields during the preceding February, March, and April. The November 1 rate reflects market yields during the preceding August, September, and October.

Series EE bonds earn the long-term rates from five years through 17 years. The long-term rate is 85% of the average of five-year Treasury security yields. A new rate is announced and becomes effective each May 1 and November 1. The May 1 rate reflects market yields during the preceding November through April and the November 1 rate reflects market yields during the preceding May through October.


Also this one:
http://www.publicdebt.treas.gov/sav/savmktrt.htm

... so it seems like at this point all your bonds are earning at the long term interest rates, based on yields of the 5-year T-bonds. Can you give some examples and we can work through the numbers?
BeckyAndKristinsMa
8-6-04, 12:44pm
Series Denom Issue Price Interest Value Rate Yield


EE $200 5/1993 $100 $64.64 $164.64 2.75 4.58
EE $200 9/1993 $100 $62.56 $162.56 2.49 4.68
EE $200 10/1994 $100 $55.52 $152.52 2.51 4.70
EE $200 10/1996 $100 $36.32 $136.32 2.46 4.17
EE $200 2/1997 $100 $34.96 $134.96 2.68 4.04
EE $200 5/1998 $100 $29.84 $129.84 2.84 4.22
EE $200 8/1999 $100 $23.04 $123.04 2.84 4.19
dewolfxy
8-10-04, 9:42am
I believe you need to wait 5 years to avoid an interest penalty, so you may want to wait until the end of August to cash that 8/99 one.
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