1. What is the Series EE Savings Bond Calculator?

The Series 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 track the growth of their bond investments over time.

2. How Does the Calculator Work?

The calculator uses the Series EE Savings Bond formula:

Where:

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

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

3. Importance of Bond Value Calculation

Details: Accurate bond value calculation is crucial for financial planning, investment tracking, and understanding the growth potential of savings bonds over time.

4. Using the Calculator

Tips: Enter the original issue price in USD, annual interest rate as a decimal (e.g., 0.025 for 2.5%), and time since issue in years. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are Series EE Savings Bonds?
A: Series EE Savings Bonds are U.S. government savings bonds that earn interest monthly and compound semiannually. They are guaranteed to double in value in 20 years.

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

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

Q4: Are Series EE bonds taxable?
A: Yes, interest earned on Series EE bonds is subject to federal income tax but exempt from state and local income taxes.

Q5: How long do Series EE bonds earn interest?
A: Series EE bonds earn interest for 30 years. After 30 years, they stop earning interest and should be redeemed.