1. What is the EE Savings Bond Calculator?

The EE Savings Bond Calculator estimates the future value of Series EE savings bonds based on the issue price, annual interest rate, and time since issue. It helps investors understand the growth potential of their bond investments over time.

2. How Does the Calculator Work?

The calculator uses the EE Savings Bond formula:

Where:

• \( FV \) — Future value of the bond (USD)
• \( P \) — Issue price of the bond (USD)
• \( r \) — Annual interest rate (decimal)
• \( t \) — Time since issue in years

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

3. Importance of Bond Value Calculation

Details: Calculating the future value of savings bonds helps investors plan their financial future, understand investment growth, and make informed decisions about bond redemption timing.

4. Using the Calculator

Tips: Enter the bond's issue price in USD, annual interest rate as a decimal (e.g., 0.03 for 3%), and time since issue in years. All values must be valid (price > 0, rate ≥ 0, time ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: What are EE Savings Bonds?
A: EE Savings Bonds are U.S. government savings bonds that earn interest monthly and compound semiannually. They are a safe, low-risk investment option.

Q2: How often does interest compound on EE bonds?
A: Interest on EE Savings Bonds compounds semiannually (twice per year), which is reflected in the formula's (1 + r/2) term.

Q3: What is the minimum investment for EE bonds?
A: The minimum purchase amount for EE Savings Bonds is $25 when buying electronically through TreasuryDirect.

Q4: How long do EE bonds earn interest?
A: EE Savings Bonds continue to earn interest for 30 years from their issue date.

Q5: Are EE bond earnings taxable?
A: Yes, interest earned on EE Savings Bonds is subject to federal income tax but exempt from state and local income taxes.