1. What is the Series EE Savings Bond Calculator?

The Series EE Savings Bond Calculator calculates the current value of US Series EE savings bonds based on the purchase amount, annual interest rate, and years held. It uses the compound interest formula with semi-annual compounding.

2. How Does the Calculator Work?

The calculator uses the Series EE savings bond formula:

Where:

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

Explanation: The formula calculates compound interest with semi-annual compounding, which is typical for Series EE savings bonds.

3. Importance of Savings Bond Calculation

Details: Accurate calculation of savings bond value helps investors track their investment growth, plan for future financial needs, and make informed decisions about bond redemption or continued holding.

4. Using the Calculator

Tips: Enter purchase amount in USD, annual interest rate as a decimal (e.g., 0.05 for 5%), and years held. All values must be valid (purchase amount > 0, interest rate ≥ 0, years ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: What are Series EE savings bonds?
A: Series EE savings bonds are US government savings bonds that earn interest and are guaranteed to double in value in 20 years.

Q2: How often is interest compounded?
A: Interest on Series EE bonds is compounded semi-annually, meaning interest is calculated and added twice per year.

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

Q4: Are there tax advantages?
A: Yes, interest earned is exempt from state and local income taxes, and federal taxes can be deferred until redemption.

Q5: When can bonds be redeemed?
A: Series EE bonds must be held for at least one year, and redeeming within 5 years results in a penalty of the last 3 months' interest.