Savings Bonds are certificates issued by the federal government that earn a variable rate of interest based on market conditions. Savings bonds can earn interest for 30 years. The interest earned is deferred from federal taxes. They are available in denominations of $50, $75, $100, $500, $2,500 and $5,000. Unison offers two types of savings bonds: Series EE and I.

EE Bonds

Series EE bonds purchased May 2005 and after will earn a fixed rate of return. Series EE bonds purchased between May 1997 and April 30, 2005 earn a variable market-based rate of return. Interest is added to the bond monthly and paid when you cash in the bond. The purchase price for a Series EE bond is half the face value (ex. $50 face value = $25 purchase price). The minimum term of ownership is one year. If you cash in your bond before five years, you will forfeit the three most-recent months’ interest. There is no penalty if you cash in your bond after five years.

I Bonds

I bonds earn a guaranteed rate of return. They are an accrual-type security. Interest is added to the bond monthly and is paid when you cash in the bond. Purchase price for a Series I bond is full face value (ex. $50 face value = $50 purchase price). The minimum term of ownership is one year. If you cash in your bond before five years, you will forfeit the three most-recent months’ interest. There is no penalty if you cash in your bond after five years.

Benefit:

• Earn interest on your bond for up to 30 years.