1. What is the I Bonds Calculator?

The I Bonds Calculator estimates the current value of U.S. Treasury Series I savings bonds based on the purchase amount, fixed annual rate, semiannual inflation rate, and years held. I Bonds are government-issued savings bonds that offer inflation protection.

2. How Does the Calculator Work?

The calculator uses the I Bonds formula:

Where:

• \( V \) — Current value (USD)
• \( P \) — Purchase amount (USD)
• \( \text{fixed} \) — Fixed annual rate (decimal)
• \( \text{inflation} \) — Semiannual inflation rate (decimal)
• \( y \) — Years held (years)

Explanation: The formula accounts for both the fixed rate and inflation components, compounded semiannually over the holding period.

3. Importance of I Bonds Calculation

Details: Accurate I Bonds valuation helps investors understand the real return on their investment, accounting for inflation protection and fixed interest components over time.

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 positive.

5. Frequently Asked Questions (FAQ)

Q1: What are I Bonds?
A: I Bonds are U.S. Treasury savings bonds that offer a combination of fixed rate and inflation-adjusted return, providing protection against inflation.

Q2: How often are rates updated?
A: Fixed rates are set at purchase, while inflation rates are adjusted every six months based on CPI-U data.

Q3: What are the current I Bonds rates?
A: Current rates are published on TreasuryDirect.gov and change every May 1st and November 1st.

Q4: Are there holding period restrictions?
A: I Bonds must be held for at least 1 year, and redeeming within 5 years results in losing the last 3 months of interest.

Q5: What is the maximum purchase amount?
A: The annual purchase limit is $10,000 per Social Security Number for electronic bonds, plus $5,000 in paper bonds via tax refund.