1. What is the US Treasury EE Savings Bond Calculator?

The US Treasury EE Savings Bond Calculator estimates the current value of EE savings bonds using the official Treasury formula. EE bonds are low-risk savings instruments that earn interest for up to 30 years.

2. How Does the Calculator Work?

The calculator uses the EE savings bond formula:

Where:

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

Explanation: The formula calculates compound interest with semi-annual compounding, which is how EE savings bonds accrue interest.

3. Importance of EE Savings 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 positive numbers.

5. Frequently Asked Questions (FAQ)

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

Q2: How often do EE bonds compound interest?
A: EE bonds compound interest semi-annually, meaning interest is calculated and added to the bond's value twice per year.

Q3: What is the minimum holding period for EE bonds?
A: 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 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: Where can I find current EE bond rates?
A: Current rates are published on the TreasuryDirect website. Rates for new EE bonds are set each May and November.