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Series EE Savings Bond Formula:
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The Series EE US Savings Bond Value Calculator estimates the current value of Series EE savings bonds based on purchase amount, annual interest rate, and years held. Series EE bonds are low-risk government savings bonds that earn interest for up to 30 years.
The calculator uses the Series EE bond valuation formula:
Where:
Explanation: The formula accounts for semi-annual compounding of interest, which is standard for Series EE savings bonds. Interest is compounded twice per year.
Details: Accurate bond valuation helps investors track their savings growth, plan for future financial needs, and make informed decisions about holding or redeeming bonds.
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 the bond has been held. All values must be positive numbers.
Q1: What are Series EE savings bonds?
A: Series EE bonds are U.S. government savings bonds that earn a fixed rate of interest for up to 30 years. They are guaranteed to double in value after 20 years.
Q2: How often does interest compound on Series EE bonds?
A: Interest compounds semi-annually (every six months), which is reflected in the formula's exponent of 2×y.
Q3: What is the minimum holding period for Series EE bonds?
A: Bonds must be held for at least one year. If redeemed before 5 years, you forfeit the last 3 months of interest.
Q4: Are Series EE bonds taxable?
A: Interest earned is subject to federal income tax but exempt from state and local taxes. Tax can be deferred until redemption or maturity.
Q5: Where can I find the current interest rate for Series EE bonds?
A: Current rates are published by the Treasury Department and can be found on TreasuryDirect.gov. Rates are set each May and November.