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US Series EE Savings Bond Formula:
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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 US 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 needs, and make informed decisions about holding or redeeming bonds.
Tips: Enter the original purchase amount in USD, 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 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, meaning interest is calculated and added to the principal twice per year.
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 5 years, you forfeit the last 3 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 find the current interest rate for Series EE bonds?
A: Current rates are published by the US Treasury Department on TreasuryDirect.gov and are typically updated every six months.