1. What is Series EE Savings Bond?

Series EE Savings Bonds are U.S. government savings bonds that earn interest monthly and compound semiannually. They are a safe, low-risk investment option backed by the full faith and credit of the U.S. 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 semiannual compounding, where interest is added to the bond's value twice per year.

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: Yes, the interest earned is subject to federal income tax but exempt from state and local income taxes.

Q4: Can I redeem my Series EE Bonds before maturity?
A: Yes, but you must hold the bond for at least one year. If redeemed before 5 years, you'll lose 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.