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Show Bonds raise interest rates The Treasury Department recently announced that it has raised the interest rate paid on all new issues of U.S. Savings Bonds by one percent effective Nov. 1, 1980. In addition, all Series E, EE, H, and HH Bonds and Savings Notes now outstanding have had their interim yields increased in-creased by one percent to their next maturity. More than $70 billion worth of Savings Bonds are now outstanding. The new interest rate is 8 percent for Series EE Bonds held to a nine-year maturity. The interim yields on these bonds have also been improved to 5.5 percent after 1 year and 7.5 percent after five years. Series HH Bonds will now earn 7.5 perceni to their ten year maturity. The rate increase was made possible by legislation permitting the Secretary of the Treasury, with the President's approval, to raise Savings Bonds interest rates by up to one percent during any six-month six-month period. The rates previously in effect were seven percent on EE Bonds held 11 years, and 6.5 percent on HH Bonds held 10 years. Depending on market conditions, the Treasury said a further rate increase of up to one percent may be made as early as May 1, 1981. |