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US Treasury Series EE Bond Formula:
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The US Treasury Series EE 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 bond formula:
Where:
Explanation: The formula accounts for semi-annual compounding, where interest is calculated twice per year and added to the principal.
Details: Accurate bond value calculation 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, 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 bonds?
A: Series EE bonds are U.S. 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 does interest compound on EE bonds?
A: Interest on Series EE bonds compounds semi-annually, meaning it is calculated and added to the principal 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 or maturity.
Q5: Where can I find the current interest rate for EE bonds?
A: Current rates are published on the TreasuryDirect website and are set each May 1 and November 1.