1. What is the EE Savings Bond Calculator?

The United States Savings Bond EE Calculator estimates the current value of EE savings bonds based on purchase amount, annual interest rate, and years held. EE bonds are low-risk government savings bonds that earn interest for up to 30 years.

2. How Does the Calculator Work?

The calculator uses the 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 accounts for semi-annual compounding, where interest is calculated twice per year and added to the principal.

3. Importance of EE Savings Bond 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 EE savings bonds?
A: EE bonds are U.S. government savings bonds that earn fixed interest rates and are guaranteed to double in value after 20 years.

Q2: How often does interest compound on EE bonds?
A: Interest compounds semi-annually (twice per year) and is added to the bond's value every six months.

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

Q4: Are 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.

Q5: Where can I check current EE bond rates?
A: Current rates are published on TreasuryDirect.gov and may change every six months for new bonds.