§ 9398 Bond Interest Rate Limits

• •The bonds pay interest twice a year: January 1 and July 1.
• •The interest rate is set by the board but cannot be more than 6% per year.
• •You get the interest money by showing the right coupons to the State Treasurer.

If you own a bond that pays 5% interest per year.

You will get half of the yearly interest on January 1 and the other half on July 1. So, if you have a $1,000 bond, you get $25 on January 1 and another $25 on July 1.