U.S. Savings Bond Value Calculator
Calculate the current redemption value of your U.S. Savings Bonds. Enter the bond's issue date and face value.
Estimated Current Value:
$0.00Understanding U.S. Savings Bonds and Their Value
U.S. Savings Bonds are a type of U.S. government savings security that are backed by the full faith and credit of the United States. They are a popular, safe, and simple way to save money for the long term. Unlike other investments, savings bonds are not subject to state or local income tax and are exempt from federal income tax until they mature or are redeemed, whichever happens first.
How Savings Bond Value is Calculated
The value of a savings bond is determined by its face value, its issue date, and the interest rates set by the U.S. Treasury. Savings bonds do not pay a fixed interest rate over their lifetime. Instead, they earn interest based on rates that are reset periodically (typically every six months). This means the interest rate can go up or down.
The calculation of a savings bond's current value is complex and involves several factors:
- Issue Date: This is crucial as it determines the initial series and the bond's maturity period. Different series (e.g., Series EE, Series I) have different earning structures and maturity dates.
- Face Value: This is the amount printed on the bond, representing its value at maturity. The purchase price is typically half of the face value for older bonds (like Series EE purchased before Feb 2002), while newer bonds are purchased at face value.
- Interest Accrual: Bonds earn interest over time. For Series EE bonds, interest accrues from the issue date. For Series I bonds, interest is composed of a fixed rate plus an inflation-adjusted rate, which changes every six months.
- Maturity: Savings bonds have a maximum maturity period, after which they stop earning interest. This is typically 30 years for most modern series.
This calculator provides an estimate. For the most accurate and official redemption value, it is recommended to use the TreasuryDirect.gov's "Treasury Hunt" tool or contact the Bureau of the Fiscal Service.
Key Savings Bond Series and Their Characteristics:
- Series EE Bonds: Purchased at half their face value (for older issues) or face value (for newer issues). They earn a fixed rate of interest for 30 years. They are designed to double in value over 20 years, though this is not guaranteed depending on interest rate fluctuations.
- Series I Bonds: Purchased at face value. They earn interest based on a combination of a fixed rate (which remains the same for the life of the bond) and an inflation rate (which is adjusted every six months). Series I bonds are designed to protect savings from inflation.
When to Redeem Your Savings Bonds
Savings bonds can be redeemed any time after 12 months from their issue date. However, if you redeem an EE bond within the first 5 years, you will forfeit the last three months of interest. Series I bonds also have a similar three-month interest penalty if redeemed within the first 12 months.
It's generally advisable to hold onto savings bonds for at least 5 years (for EE) or 1 year (for I) to maximize your returns and avoid penalties. Bonds generally stop earning interest 30 years after their issue date.