1. What is the EE Savings Bond Calculator?

The EE Savings Bond Calculator estimates the current value of US EE savings bonds using Treasury-approved calculation methods. It helps investors track the growth of their bond investments over time.

2. How Does the Calculator Work?

The calculator uses the EE Savings Bond formula:

Where:

• \( V \) — Current value of the bond (USD)
• \( P \) — Original purchase amount (USD)
• \( rate \) — Annual interest rate (decimal)
• \( y \) — Number of years the bond has been held

Explanation: The formula accounts for semi-annual compounding, where interest is applied twice per year, resulting in more accurate growth calculations for savings bonds.

3. Importance of EE Savings Bond Calculation

Details: Accurate bond valuation is essential for financial planning, tax reporting, and understanding investment performance. EE savings bonds are guaranteed to double in value after 20 years.

4. Using the Calculator

Tips: Enter the original purchase amount in USD, the annual interest rate as a decimal (e.g., 0.025 for 2.5%), and the number of years held. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are EE savings bonds?
A: EE savings bonds are US government savings bonds that earn interest for up to 30 years. They are guaranteed to double in value after 20 years.

Q2: How often is interest compounded on EE bonds?
A: Interest on EE savings bonds is compounded semi-annually, meaning interest is calculated and added to the bond's value twice per year.

Q3: What is the minimum investment for EE bonds?
A: The minimum purchase amount for EE savings bonds is $25 when buying electronically through TreasuryDirect.

Q4: Are EE savings bonds taxable?
A: Interest earned on EE bonds is subject to federal income tax but exempt from state and local income taxes.

Q5: Can I redeem EE bonds before maturity?
A: EE bonds must be held for at least one year, and if redeemed before five years, you'll forfeit the last three months of interest.