1. What is the US Treasury Savings Bond Calculator?

The US Treasury Savings Bond Calculator estimates the current value of savings bonds using the semi-annual compounding formula. It helps investors track the growth of their Treasury bond investments over time.

2. How Does the Calculator Work?

The calculator uses the US Treasury savings bond formula:

Where:

• \( V \) — Current value (USD)
• \( P \) — Purchase amount (USD)
• \( rate \) — Annual interest rate (decimal)
• \( y \) — Years held (years)

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

3. Importance of Savings Bond Calculation

Details: Accurate bond valuation is essential for financial planning, investment tracking, and understanding the true return on Treasury bond investments over time.

4. Using the Calculator

Tips: Enter the original purchase amount in USD, annual interest rate as a decimal (e.g., 0.05 for 5%), and the number of years the bond has been held. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What types of savings bonds does this calculator work for?
A: This calculator works for Series EE and Series I savings bonds that use semi-annual compounding interest.

Q2: How often is interest compounded on Treasury savings bonds?
A: Interest on US Treasury savings bonds compounds semi-annually (twice per year).

Q3: What is the minimum investment for Treasury savings bonds?
A: The minimum purchase amount for electronic savings bonds is $25, with higher denominations available.

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

Q5: Can I redeem savings bonds before maturity?
A: Most savings bonds have a minimum holding period of 1 year, with early redemption penalties if cashed within first 5 years.