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US Treasury EE Savings Bond Formula:
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US Treasury EE Savings Bonds are low-risk savings products that pay interest based on a fixed rate. They are guaranteed to double in value after 20 years and continue to earn interest for up to 30 years.
The calculator uses the EE Savings Bond formula:
Where:
Explanation: The formula calculates the compound interest with semi-annual compounding, which is how EE Savings Bonds accrue interest.
Details: Accurate bond value calculation helps investors track their savings growth, plan for future expenses, and understand the long-term benefits of this secure investment option.
Tips: Enter the original purchase price, annual interest rate (as decimal, e.g., 0.025 for 2.5%), and time since purchase in years. All values must be valid positive numbers.
Q1: What is the minimum investment for EE Savings Bonds?
A: The minimum purchase amount for EE Savings Bonds is $25 when buying electronically through TreasuryDirect.
Q2: How long do EE Savings Bonds earn interest?
A: EE Savings Bonds earn interest for 30 years. They are guaranteed to double in value after 20 years.
Q3: Are EE Savings Bonds taxable?
A: Interest earned is subject to federal income tax but exempt from state and local income taxes. Tax can be deferred until redemption or final maturity.
Q4: Can I redeem my EE Savings 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 EE Savings Bonds?
A: EE Savings Bonds can be purchased electronically through TreasuryDirect.gov. Paper bonds are no longer sold through financial institutions.