Home
Back
United States Savings Bond Formula:
| From: | To: |
The United States Savings Bond Worth Calculator calculates the current value of savings bonds based on the purchase amount, annual interest rate, and years held. It uses semi-annual compounding to determine the bond's worth over time.
The calculator uses the savings bond valuation formula:
Where:
Explanation: The formula accounts for semi-annual compounding, where interest is calculated twice per year, leading to more accurate valuation of savings bonds over time.
Details: Accurate bond valuation helps investors understand the growth of their savings, 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 that use semi-annual compounding interest.
Q2: How often does interest compound on savings bonds?
A: Most US savings bonds compound interest semi-annually (twice per year), which is reflected in the formula used by this calculator.
Q3: What is the minimum investment for US savings bonds?
A: The minimum purchase amount for electronic savings bonds is $25, while paper bonds have different minimum requirements depending on the series.
Q4: Are savings bonds taxable?
A: Interest earned on savings bonds is subject to federal income tax but exempt from state and local taxes. Tax can be deferred until redemption or maturity.
Q5: What happens when a savings bond reaches maturity?
A: Savings bonds stop earning interest at maturity (30 years for most bonds). It's important to redeem matured bonds to reinvest the funds.