Electronic I Bond Calculator Treasurydirect

Electronic Series I Bond Value Formula:

\[ V = P \times (1 + \frac{fixed + 2 \times inflation + fixed \times inflation}{2})^{2 \times y} \]

Purchase Amount (P):

USD

Fixed Annual Rate (fixed):

decimal

Semiannual Inflation Rate (inflation):

decimal

Years Held (y):

years

Current Value (V):

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Electronic Series I Bond Calculator?

The Electronic Series I Bond Calculator estimates the current value of U.S. Treasury Series I savings bonds using the official TreasuryDirect formula. I bonds are inflation-protected securities that earn both a fixed rate and an inflation-adjusted rate.

2. How Does the Calculator Work?

The calculator uses the TreasuryDirect formula:

\[ V = P \times (1 + \frac{fixed + 2 \times inflation + fixed \times inflation}{2})^{2 \times y} \]

Where:

$ V $ — Current value (USD)
$ P $ — Purchase amount (USD)
$ fixed $ — Fixed annual rate (decimal)
$ inflation $ — Semiannual inflation rate (decimal)
$ y $ — Years held (years)

Explanation: The formula combines the fixed rate with twice the semiannual inflation rate plus their product, divided by 2, then compounds this combined rate semiannually over the holding period.

3. Importance of I Bond Value Calculation

Details: Accurate I bond valuation helps investors track their inflation-protected savings, plan for future expenses, and make informed decisions about holding or redeeming bonds.

4. Using the Calculator

Tips: Enter purchase amount in USD, fixed annual rate and inflation rate as decimals (e.g., 0.025 for 2.5%), and years held. All values must be non-negative.

5. Frequently Asked Questions (FAQ)

Q1: What are Series I bonds?
A: Series I savings bonds are U.S. Treasury securities that protect against inflation. They earn a composite rate combining a fixed rate and an inflation-adjusted rate.

Q2: How often do inflation rates change?
A: Inflation rates for I bonds are adjusted every six months (May and November) based on the Consumer Price Index for All Urban Consumers (CPI-U).

Q3: What is the minimum holding period for I bonds?
A: I bonds must be held for at least one year. If redeemed within the first five years, you forfeit the last three months of interest.

Q4: Are there purchase limits for electronic I bonds?
A: Yes, the annual purchase limit is $10,000 per Social Security Number for electronic I bonds through TreasuryDirect.

Q5: How are I bonds taxed?
A: I bond interest is exempt from state and local taxes but subject to federal income tax. Tax can be deferred until redemption or maturity.