Home
Back
US Series EE Savings Bond Formula:
| From: | To: |
The US Series EE Savings Bond 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 government savings bonds that earn interest for up to 30 years.
The calculator uses the Series EE savings bond formula:
Where:
Explanation: The formula calculates compound interest with semi-annual compounding, which is typical for Series EE savings bonds.
Details: Accurate bond valuation helps investors track their savings growth, 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., 0.025 for 2.5%), and the number of years the bond has been held. All values must be positive.
Q1: What are Series EE savings bonds?
A: Series EE bonds are U.S. government savings bonds that earn a fixed rate of interest and 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, which is reflected in the formula with the division by 2 and exponent multiplication by 2.
Q3: What is the minimum investment for Series EE bonds?
A: The minimum purchase amount for electronic Series EE bonds is $25, while paper bonds have a minimum of $50.
Q4: How long do Series EE bonds earn interest?
A: Series EE bonds earn interest for 30 years. After that, they stop earning interest and should be redeemed.
Q5: Are there tax advantages to Series EE bonds?
A: Yes, interest earned is exempt from state and local taxes, and federal taxes can be deferred until redemption or maturity.