Us Savings Bonds Maturity Calculator

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US Savings Bonds Maturity Calculator
Series EE Bond (Fixed Rate)Series I Bond (Inflation Protected)
Maturity Summary:
Enter values above and click calculate to see bond maturity data.
function calculateSavingsBond(){var type=document.getElementById('bond_type').value;var face=parseFloat(document.getElementById('face_value').value);var rate=parseFloat(document.getElementById('interest_rate').value)/100;var year=parseInt(document.getElementById('issue_year').value);var steps=document.getElementById('show_steps').checked;if(isNaN(face)||isNaN(rate)||isNaN(year)){alert('Please enter valid numeric values for all fields.');return;}var finalMaturityYear=year+30;var compoundingPeriods=2;var totalPeriods=30*compoundingPeriods;var maturityValue=face*Math.pow((1+(rate/compoundingPeriods)),totalPeriods);var totalInterest=maturityValue-face;var doubleYear=year+20;var res="
";res+="Final Maturity Date: Jan 1, "+finalMaturityYear+" (30 years)
";res+="Estimated Value at Maturity: $"+maturityValue.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+"
";res+="Total Interest Earned: $"+totalInterest.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+"
";if(type==="EE"){res+="
Note: Series EE bonds issued after May 2005 are guaranteed to double in value after 20 years (in "+doubleYear+").
";}if(steps){res+="
Detailed Calculation:
";res+="1. Principal (Face Value): $"+face.toFixed(2)+"
";res+="2. Annual Rate: "+(rate*100).toFixed(2)+"% compounded semiannually
";res+="3. Time to Maturity: 30 years (60 periods)
";res+="4. Formula: FV = P(1 + r/n)^(nt)
";res+="5. Result: $"+face.toFixed(2)+" * (1 + "+(rate/2).toFixed(4)+")^60
";}document.getElementById('resultText').innerHTML=res;}

How to Use the US Savings Bonds Maturity Calculator

Understanding when your US Savings bonds reach their full value is critical for financial planning. This us savings bonds maturity calculator helps you estimate the final value and interest earned for Series EE and Series I bonds. Whether you inherited bonds or bought them as a long-term investment, knowing the 30-year final maturity date prevents you from holding a non-earning asset.

Bond Series
Choose between Series EE (historically sold at a discount or with fixed rates) and Series I (inflation-protected bonds).
Bond Face Value
The denomination of the bond. For electronic bonds, this is the amount you paid. For paper Series EE, it is the value printed on the bond (though you likely paid half that price).
Annual Interest Rate
The fixed interest rate or composite rate assigned to the bond. Series I rates change every six months, so use an average estimate for long-term calculations.
Year of Issue
The year the bond was purchased. This is used to determine the 20-year doubling period and the 30-year final maturity.

How US Savings Bond Interest Works

US Savings bonds earn interest through a process called semiannual compounding. This means the interest is calculated every six months and added to the principal, and then the next six months' interest is calculated on that new, larger amount. The mathematical formula used in our us savings bonds maturity calculator is:

FV = P (1 + r / n)nt

  • FV: Future Value (the value at maturity)
  • P: Principal (the Face Value or initial investment)
  • r: Annual interest rate (decimal)
  • n: Number of times interest compounds per year (2 for savings bonds)
  • t: Number of years (typically 30 for final maturity)

Series EE vs. Series I Bonds

It is important to distinguish between the two primary types of bonds currently available or commonly held in the United States:

Series EE Bonds

Series EE bonds are fixed-rate securities. One of their most significant features is the 20-year guarantee. If a Series EE bond has not doubled in value by its 20th anniversary, the US Treasury provides a one-time "catch-up" payment to ensure it reaches twice its purchase price. After this doubling, it continues to earn interest at the original fixed rate until it reaches final maturity at 30 years.

Series I Bonds

Series I bonds are designed to protect your purchasing power from inflation. Their interest rate is a composite rate: a fixed base rate plus a variable inflation rate that is adjusted every May and November. Because the inflation rate changes, the us savings bonds maturity calculator uses an estimated average to project future value over the full 30-year life of the bond.

Maturity Calculation Example

Example: You purchased a $1,000 Series EE bond in January 2024 with a fixed rate of 2.70%.

Step-by-step solution:

  1. Initial Principal (P) = $1,000
  2. Annual Interest Rate (r) = 0.027
  3. Compounding frequency (n) = 2
  4. Time (t) = 30 years
  5. Calculation: $1,000 * (1 + 0.027 / 2)^(2 * 30)
  6. Result: $1,000 * (1.0135)^60 ≈ $2,233.91
  7. In this case, the bond also doubles at year 20 to $2,000, and then continues earning interest, potentially resulting in a higher final value.

Common Questions

What happens when a bond reaches "final maturity"?

When a US Savings bond reaches its final maturity (usually 30 years after issue), it stops earning interest entirely. It is highly recommended that you redeem the bond at this point, as its value will no longer grow, and you will eventually be liable for federal income tax on the deferred interest.

Are savings bonds taxable?

Yes, interest earned on US Savings bonds is subject to federal income tax. However, it is generally exempt from state and local income taxes. You can choose to report the interest annually or defer reporting until the bond is redeemed or reaches final maturity.

Can I cash out my bond before maturity?

Yes, you can cash out (redeem) bonds after 12 months. However, if you redeem a bond before it is five years old, you will lose the last three months of interest as a penalty. After five years, there is no interest penalty for early redemption.

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