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US Series EE Savings Bonds Formula:
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The US Series EE Savings Bonds Calculator calculates the current value of Series EE savings bonds based on the purchase amount, annual interest rate, and years held. Series EE bonds are low-risk savings bonds issued by the US Treasury that earn interest for up to 30 years.
The calculator uses the Series EE savings bonds formula:
Where:
Explanation: The formula calculates compound interest with semi-annual compounding, which is how Series EE bonds accrue interest.
Details: Accurate bond value calculation 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 US 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 do Series EE bonds compound interest?
A: Series EE bonds compound interest semiannually (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: Series EE bonds must be held for at least one year. If redeemed within the first five years, you forfeit the last three months of interest.
Q4: Are Series EE bonds taxable?
A: Interest earned on Series EE bonds 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 check current Series EE bond rates?
A: Current rates are published on the TreasuryDirect website. Rates for new bonds are set each May 1 and November 1.