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Treasury Direct Savings Bond Formula:
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The Treasury Direct Savings Bond Value Calculator calculates the current value of savings bonds purchased through the U.S. Treasury Direct program. It uses the standard compound interest formula with semi-annual compounding to determine the bond's worth after a specified holding period.
The calculator uses the Treasury Direct savings bond formula:
Where:
Explanation: The formula accounts for semi-annual compounding, where interest is calculated twice per year and added to the principal balance.
Details: Accurate bond valuation helps investors track their savings growth, plan for future financial goals, and make informed decisions about bond redemption or continued holding.
Tips: Enter the original purchase amount in USD, the 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 positive numbers.
Q1: What types of savings bonds does this calculator work for?
A: This calculator works for Series EE and Series I savings bonds purchased through Treasury Direct, using the standard semi-annual compounding method.
Q2: How often is interest compounded on Treasury Direct bonds?
A: Interest on Treasury Direct savings bonds is compounded semi-annually, meaning it's calculated and added to the principal twice per year.
Q3: Are there any penalties for early redemption?
A: Savings bonds redeemed within the first 5 years typically incur a penalty of the last 3 months' interest. Bonds must be held for at least 1 year before redemption.
Q4: How do I find the current interest rate for my bond?
A: Current interest rates for Series EE and Series I bonds are published on the Treasury Direct website and updated every six months.
Q5: Can this calculator be used for bonds older than 30 years?
A: Most savings bonds stop earning interest after 30 years, so this calculator is most accurate for bonds held for 30 years or less.