1. What is the Series EE Savings Bond?

Series EE Savings Bonds are U.S. government savings bonds that earn interest for up to 30 years. They are a safe, low-risk investment backed by the full faith and credit of the United States government.

2. How Does the Calculator Work?

The calculator uses the Series EE Savings Bond formula:

Where:

• \( FV \) — Future Value (bond value in USD)
• \( P \) — Issue Price (purchase price in USD)
• \( r \) — Annual Interest Rate (in decimal form)
• \( t \) — Time Since Issue (in years)

Explanation: The formula calculates the future value of Series EE Savings Bonds with semi-annual compounding, accounting for the bond's interest accrual pattern.

3. Importance of Bond Value Calculation

Details: Accurate bond value calculation helps investors track their investment growth, plan for future financial needs, and make informed decisions about holding or redeeming bonds.

4. Using the Calculator

Tips: Enter the bond's issue price in USD, annual interest rate in decimal form (e.g., 0.025 for 2.5%), and time since issue in years. All values must be valid (price > 0, rate ≥ 0, time ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum investment for Series EE Bonds?
A: The minimum purchase amount for Series EE Bonds is $25 when buying electronically through TreasuryDirect.

Q2: How long do Series EE Bonds earn interest?
A: Series EE Bonds earn interest for 30 years. They are guaranteed to double in value in 20 years.

Q3: Are Series EE Bonds taxable?
A: Interest earned on Series EE Bonds is subject to federal income tax but exempt from state and local income taxes.

Q4: Can I redeem my Series EE Bond before maturity?
A: Yes, but you must hold the bond for at least one year. If redeemed before 5 years, you'll forfeit the last 3 months of interest.

Q5: Where can I purchase Series EE Bonds?
A: Series EE Bonds can be purchased electronically through the TreasuryDirect website at www.treasurydirect.gov.