In November of 2011, the Bureau of Public Debt announced
that the earnings rate for Series I Savings Bonds is 3.06%, and the Series EE
Bond rate is 0.60%. The rates are
adjusted every April and November, so the rates are good until April 2012.
I Bond rates are the combination of a fixed rate and
semiannual inflation rate. The fixed rate applies for the life of the bond, and
is currently 0%. But, the inflation rate is presently set to 3.06% and will
remain there until the next adjustment date, April 2012. EE bonds issued between November 2011 and
April 2012 will earn 0.60% for the life of the bond.Here are some quick facts about I & EE Bonds purchased electronically (not paper):
- Sold at face
value; you pay $50 for a $50 bond.
- Purchased in
amounts of $25 or more, to the penny.
- $5,000
maximum purchase in one calendar year.
- Issued
electronically to your designated account.
Interest earned from bonds is subject to federal income tax, but it’s deferred until redemption, final maturity, or other taxable disposition, whichever occurs first. However, you may be able to exclude all of the interest from your gross income if you use the bond to pay for qualified higher education expenses. You can visit the Treasury Direct website to get more information about saving bonds.
Brycast Financial Planning in Austin Texas --- We Can Help
Income Tax Preparation in Austin Texas
contact: service@brycast.com http://www.brycast.com/
Enrolled Agent; Registered Investment Advisor