1. What is the Series EE Bond Calculator?

The Treasury Direct Series EE Bond Calculator calculates the current value of Series EE savings bonds using the compound interest formula. Series EE bonds are U.S. government savings bonds that earn interest for up to 30 years.

2. How Does the Calculator Work?

The calculator uses the Series EE 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 how Series EE bonds accrue interest.

3. Importance of Bond Value Calculation

Details: Accurate bond valuation helps investors track their savings growth, plan for future expenses, and make informed decisions about holding or redeeming bonds.

4. Using the Calculator

Tips: Enter purchase amount in USD, annual interest rate as a decimal (e.g., 0.025 for 2.5%), and years held. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are Series EE 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 in 20 years.

Q2: How often do EE bonds compound interest?
A: Series EE bonds compound interest semi-annually (every 6 months), which is reflected in the formula's exponent of 2*y.

Q3: What is the minimum holding period for EE bonds?
A: EE bonds must be held for at least 1 year. If redeemed before 5 years, you lose the last 3 months of interest.

Q4: Are EE bonds taxable?
A: Interest earned on EE bonds is subject to federal income tax but exempt from state and local taxes. Tax can be deferred until redemption.

Q5: Where can I find current EE bond rates?
A: Current rates are published on the TreasuryDirect website and are set each May 1 and November 1.