Series EE Savings Bonds Get New Patriotic Name

The U.S. Treasury will rename its Series EE savings bonds sold through banks and over the Internet as Patriot Bonds to help raise money for the war on terrorism. The program will start 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,” the Treasury said in a news release.

The bonds will be inscribed with the legend “Patriot Bond.” Otherwise, the design won’t change. The change won’t apply to Series EE savings bonds sold through the payroll savings plan, Series H savings bonds or Series I inflation-indexed savings bonds.

Implementing the change didn’t require legislation, though there have been calls by Congress for such investment vehicles--similar to World War II-era war bonds and Vietnam War-era savings notes--to help finance the global campaign against terrorists after the Sept. 11 attacks.

The current interest rate on Series EE bonds, pegged to 90% of the yield on five-year Treasury notes, is 4.07%. The interest rate is reset twice a year, on May 1 and Nov. 1. The Series EE bonds sell at half face value and are available in denominations of $50 to $10,000.