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Q:

What interest rate do the trust funds' assets earn?

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The rate of interest on special issues is determined by a formula enacted in 1960. The rate is determined at the end of each month and applies to new investments in the following month. The numeric average of the 12 monthly interest rates for 2008 was 3.635 percent. The annual effective interest rate (the average rate of return on all investments over a one-year period) for the OASI and DI Trust Funds, combined, was 5.096 percent in 2008. This higher effective rate resulted because the funds hold special-issue bonds acquired in past years when interest rates were higher. more
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The rate of interest on special issues is determined by a formula enacted in 1960. The rate is determined at the end of each month and applies to new investments in the following month. The numeric average of the 12 monthly interest rates for 2009 was 2.917 percent. The annual effective interest rate (the average rate of return on all investments over a one-year period) for the OASI and DI Trust Funds, combined, was 4.860 percent in 2009. This higher effective rate resulted because the funds hold special-issue bonds acquired in past years when interest rates were higher. more
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