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The Treasury Department will designate Series EE savings bonds sold through financial institutions as Patriot Bonds, beginning in mid-December. The funds raised by the bonds, while not earmarked for a specific purpose, will contribute to the federal government's overall effort to fight the war on global terrorism.
Series EE savings bonds sold through financial institutions will be specially inscribed with the legend Patriot Bond. The legend also will appear on Series EE bonds available at the Bureau of the Public Debt's Savings Bond Direct website www.savingsbonds.gov.
Series EE savings bonds, earn 90 percent of 5-year Treasury securities yields. The current rate in effect through April 2002 is 4.07 percent. The bonds sell as half face value and are available in denominations of $50, $75, $100, $200, $500, $1,000, $5,000 and $10,000.
Series EE bonds increase in value monthly and interest is compounded semiannually. Interest is exempt from state and local income taxes and federal tax can be deferred until the bond is redeemed or it stops earning interest at 30 years. Bonds can be redeemed anytime after six months. A 3-month interest penalty is applied to bonds redeemed before five years.
