1. What is the US Series I Savings Bonds Calculator?

The US Series I Savings Bonds Calculator calculates the current value of Series I savings bonds based on the purchase amount, fixed annual rate, semiannual inflation rate, and years held. Series I bonds are inflation-protected savings bonds issued by the US Treasury.

2. How Does the Calculator Work?

The calculator uses the Series I bond formula:

Where:

• \( V \) — Current value (USD)
• \( P \) — Purchase amount (USD)
• \( fixed \) — Fixed annual rate (decimal)
• \( inflation \) — Semiannual inflation rate (decimal)
• \( y \) — Years held (years)

Explanation: The formula accounts for both the fixed rate component and the inflation adjustment component, compounded semiannually over the holding period.

3. Importance of Series I Bond Calculation

Details: Accurate calculation helps investors understand the real return on their Series I bond investments, accounting for inflation protection and fixed interest components.

4. Using the Calculator

Tips: Enter purchase amount in USD, fixed annual rate and inflation rate as decimals (e.g., 0.05 for 5%), and years held. All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: What are Series I savings bonds?
A: Series I bonds are US government savings bonds that earn interest based on both a fixed rate and an inflation rate that adjusts semiannually.

Q2: How often do inflation rates change?
A: Inflation rates for Series I bonds are adjusted every six months, in May and November.

Q3: What is the minimum investment?
A: The minimum purchase amount for electronic Series I bonds is $25, while paper bonds have a $50 minimum.

Q4: Are there holding period restrictions?
A: Yes, Series I bonds must be held for at least one year, and there's a penalty of 3 months' interest if redeemed within 5 years.

Q5: Are Series I bonds taxable?
A: Interest earned is subject to federal income tax but exempt from state and local income taxes.