Series EE Savings Bond Value Calculator
Use this calculator to estimate the value of your Series EE savings bonds purchased May 2005 or later, which have a fixed interest rate. This tool accounts for semiannual compounding, the 20-year doubling guarantee, and the 3-month interest penalty if redeemed before 5 years.
Understanding Series EE Savings Bonds
Series EE savings bonds are a low-risk, long-term savings product offered by the U.S. Treasury. They are purchased at half their face value (e.g., a $100 bond costs $50) and earn interest for 30 years. This calculator focuses on bonds purchased May 2005 and later, which have a fixed interest rate for their entire life.
Key Features of Series EE Bonds (May 2005 and later):
- Purchase Price: Bonds are bought at 50% of their face value. For example, to get a $100 bond, you pay $50.
- Fixed Interest Rate: The interest rate is set at the time of purchase and remains the same for the bond's 30-year life. This rate is announced every May and November.
- Semiannual Compounding: Interest is added to the bond's value every six months. You don't receive interest payments; it accrues and increases the bond's value.
- 20-Year Doubling Guarantee: A significant feature is that all Series EE bonds purchased since May 2005 are guaranteed to double in value in 20 years. If the fixed interest rate doesn't achieve this doubling on its own, the Treasury makes a one-time adjustment at the 20-year mark to ensure the bond's value is at least double its purchase price. After 20 years, the bond continues to earn interest at its fixed rate on the (potentially doubled) value.
- Redemption Period: You cannot redeem an EE bond for the first 12 months after its issue date.
- Interest Penalty: If you redeem the bond before holding it for 5 years, you forfeit the last three months of interest earned.
- Tax Advantages: Interest earned on EE bonds is exempt from state and local income taxes. Federal income tax can be deferred until the bond is redeemed or matures, or it can be excluded entirely if used for qualified higher education expenses.
How the Calculator Works:
This calculator takes your bond's purchase price, purchase date, fixed annual rate, and desired redemption date to estimate its future value. It applies the semiannual compounding, checks for the 20-year doubling guarantee, and accounts for the 3-month interest penalty if redeemed early. Please note that this calculator is designed for bonds purchased May 2005 or later with a fixed rate. Bonds purchased before this period had different rate structures (e.g., variable rates for certain periods) which are not covered by this tool.
Example Calculation:
Let's say you purchased a Series EE bond for $50 (face value $100) in January 2010 with a fixed annual rate of 0.10%. You want to redeem it in January 2025.
- Purchase Price: $50
- Purchase Date: January 2010
- Fixed Annual Rate: 0.10%
- Redemption Date: January 2025
The calculator would determine that you held the bond for 15 years (180 months). Since this is less than 20 years, the doubling guarantee hasn't kicked in yet. Since it's more than 5 years, there's no interest penalty. The bond would have compounded semiannually at 0.05% (half of 0.10%) for 30 periods (180 months / 6 months per period). The estimated value would be approximately $50.75, with $0.75 in interest earned.
If you held the same bond until January 2030 (20 years), the calculator would apply the 20-year doubling guarantee, bringing its value to $100, regardless of the low fixed rate.