Series EE bonds issued from May 2015 through October 2015 earn today’s announced rate of 0.30%. All Series EE bonds issued since May 2005 earn a fixed rate in the first 20 years after issue. At 20 years, the bonds will be worth at least two times their purchase price. The bonds will continue to earn interest at their original fixed rate for an additional 10 years unless new terms and conditions are announced before the final 10-year period begins.)

I can’t find this provision mentioned anywhere else on the treasurydirect website. Does anyone know if it is true?

EDIT: that would make their minimum APY 3.5% because 1.035 ^ 20 = 2. Not bad in today’s environment, better than 30Y treasuries!

^ It should grow at the stated “interest rate” until it matures.

I thought these were pure discount bonds. issued at 50 matures at 100 in 20 years? The .3% feels wrong but I haven’t looked at EE series bonds in a long time

^ Only paper bonds. Electronic ones are sold at face value and earn interest at face value. But my OP was right - if interest rates stay low and your $100 bond is worth only $130 after 20 years, the treasury will still pay you $200.

You bought a paper EE Bond at half its face value. For example, you paid $50 for a $100 paper EE Bond.

The bond starts to earn interest on what you paid (not on its face value). Over time, with interest compounded every six months, the bond gets closer and closer to its face value.

Treasury guarantees that an EE Bond will be worth at least its face value after the first 20 years. If an EE Bond does not double in value (reach its face value) as a result of applying the fixed rate of interest for those 20 years, Treasury will make a one-time adjustment at the 20 year anniversary of the bond’s issue date to make up the difference.

EE Bonds continue to earn interest for up to 30 years.

Electronic bonds are sold at face value (not half of face value). They start to earn interest right away on the full face value. Treasury guarantees that for an electronic EE Bond with a June 2003 or later issue date, after 20 years, the redemption (cash-in) value will be at least twice the purchase price of the bond. If the redemption (cash-in) value is not at least twice the purchase price of the electronic bond as a result of applying the fixed rate of interest for those 20 years, Treasury will make a one-time adjustment at the 20 year anniversary of the bond’s issue date to make up the difference.

It’s a special deal because the amount of EE Savings Bonds each person can purchase per year is limited to $10k per person:

…"Through your TreasuryDirect account - which is established using your name and social security number, bank information, driver’s license and e–mail address – you can invest in electronic savings bonds (also referred to as book–entry savings bonds) each calendar year by purchasing as much as: