Treasury Lowers Rates for Savings Bonds

WASHINGTON — With interest rates falling, buyers of U.S. Savings Bonds in the next six months will be earning less.

The Treasury Department on Thursday said interest rates on short-term bonds issued from November through April will be 4.75%, down from 5.25%. The rate for long-term bonds will be 5.16% instead of 6.31%.

The Treasury adopted a new fluctuating-rate system in May, dropping guaranteed minimum rates and pegging them to the market.

Series EE Savings Bonds will earn the new short-term rate for the first five years and the long-term rate after that through 17 years.

The short-term rate is equal to 85% of the average of six-month Treasury security yields for August through October. The long-term rate is equal to 85% of the average of five-year securities during the same period.