- A Patriot Bond is officially a Series EE Savings bond; it was given the additional title of "Patriot Bond," shortly after September 11, 2001. A savings bond is an investment issued by the Treasury Department on which the purchaser earns interest each month based on Treasury rates. A savings bond is generally seen to be a risk-free investment.
- Interest rates on Patriot Bonds are variable and equal to 90 percent of the 5-Year Treasury Yield. This rate is adjusted in May and November each year. Taxes are not paid on any interest earnings until the bond is cashed in or reaches full maturity.
- Anyone with a Social Security number may purchase a Patriot Bond. Most banks and credit unions sell them. They are also available for purchase over the Internet (see link in Resources). Patriot Bonds may be purchased in the following amounts: $50, $75, $100, $200, $500, $1,000, $5,000 and $10,000.
- The initial purchase price for all Patriot Bonds is half the face value of the bond.
- The average time it takes Patriot Bonds to reach full face value is 20 years, but they can continue to earn interest until 30 years. A Patriot Bond may be redeemed at any time after it has been held for 5 years initially. Should the purchaser want to redeem the bond before the 5-year mark, there is a 3-month interest penalty.
Patriot Bonds
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