1. What is the US EE Bond Calculator?

The US EE Bond Calculator calculates the current value of US Series EE savings bonds based on purchase amount, annual interest rate, and years held. EE bonds are low-risk savings bonds issued by the US Treasury that earn interest for up to 30 years.

2. How Does the Calculator Work?

The calculator uses the 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 EE bonds typically accrue interest.

3. Importance of EE Bond Calculation

Details: Calculating the current value of EE bonds 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 US EE Bonds?
A: US Series EE Savings Bonds are government-backed savings bonds that earn interest for up to 30 years. They are considered very low-risk investments.

Q2: How often do EE bonds compound interest?
A: EE bonds typically compound interest semi-annually (twice per year), which is reflected in the formula used by this calculator.

Q3: What is the minimum investment for EE bonds?
A: The minimum purchase amount for EE bonds is $25 when buying electronically through TreasuryDirect.

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: Can EE bonds lose value?
A: EE bonds are guaranteed to at least double in value after 20 years, making them very safe investments that cannot lose principal value.