Series I and Series EE Bond Rules

When it comes to a Series EE bond or Series I bond, there are certain rules that you will have to be aware of. Here are some of the rules associated with Series I and Series EE bonds.

Minimum Ownership

With either type of bond, you have to hold ownership of the bond for at least one year. Ideally, you should hold these bonds for at least five years. If you sell them before five years is up, you are going to have to forfeit the last three months' worth of interest that was earned on the bond. 

Maximum Investment

With these types of bonds, you are also going to be limited to the amount of money that you can invest per year. Currently, you can invest in a maximum of $5000 worth of bonds in a calendar year. 

Tax-Free

In certain situations, the money that you earn from these bonds can become tax-free. If you use the money for qualified educational expenses, you will be able to take the profits from the interest without paying any taxes. You can also potentially qualify for tax-free interest if your income level falls below a certain amount. If you do not meet these qualifications, you will pay taxes on the interest that you have earned when you redeem the bond.

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