Treasury Sets Rates For Savings Bonds

New U.S. savings bonds will earn 4.36 percent in interest for the first five years and 4.85 percent thereafter until maturity in 17 years.

The rates apply to Series EE bonds issued over the next six months. The rates will be readjusted Nov. 1 to reflect market conditions, the Treasury Department said Wednesday.

The short-term rate is 85 percent of the average of six-month Treasury security yields for February through April 1996. The long-term rate is 85 percent of the average of five-year Treasury security yields from November 1995 through April 1996.