1. What is the US Treasury EE Bond Calculator?

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

2. How Does the Calculator Work?

The calculator uses the EE bond compound interest formula:

Where:

• \( V \) — Current value of the bond (USD)
• \( P \) — Purchase amount/face value (USD)
• \( rate \) — Annual interest rate (decimal form)
• \( y \) — Number of years the bond has been held

Explanation: The formula accounts for semi-annual compounding, where interest is calculated twice per year and added to the principal.

3. Importance of EE Bond Calculation

Details: Accurate bond valuation 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 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 held. All values must be valid (purchase amount > 0, rate ≥ 0, years ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: What are EE bonds?
A: EE bonds are US government savings bonds that earn interest for up to 30 years. They are guaranteed to double in value if held for 20 years.

Q2: How often does interest compound on EE bonds?
A: Interest compounds semiannually (twice per year), which is reflected in the formula's exponent of 2×y.

Q3: What is the minimum holding period for EE bonds?
A: EE bonds must be held for at least one year. If redeemed before 5 years, you forfeit the last 3 months of interest.

Q4: Are EE bonds taxable?
A: Interest earned is subject to federal income tax but exempt from state and local taxes. Tax can be deferred until redemption.

Q5: Where can I purchase EE bonds?
A: EE bonds can be purchased electronically through TreasuryDirect.gov. Paper bonds are no longer sold at financial institutions.