Series EE Savings Bond Calculator
Estimate the current value and future growth of your Series EE bonds.
Understanding Series EE Savings Bonds
Series EE bonds are low-risk savings products issued by the U.S. Treasury. For bonds issued since May 2005, they are purchased at face value, meaning if you pay $1,000, you have a bond with a $1,000 denomination. The most unique feature of the Series EE bond is the Treasury's guarantee that the bond will double in value if held for 20 years.
How Calculations Work
The math behind an EE bond depends on its issue date. For modern bonds (issued after May 2005):
- Fixed Rate: Bonds earn a fixed rate of interest that is set at the time of purchase.
- Compounding: Interest is added to the bond monthly and compounds semiannually (every six months).
- The 20-Year Rule: If the accrued interest and principal do not result in the bond doubling in 20 years, the Treasury makes a one-time adjustment to fulfill the guarantee.
Realistic Example
Suppose you purchased a $10,000 Series EE bond in June 2004. At that time, bonds were sold at half their face value. You would have paid $5,000. By June 2024 (20 years later), the bond is guaranteed to be worth $10,000, regardless of the variable or fixed interest rates applied during those two decades. If you bought a $1,000 bond today at a 2.70% fixed rate, it would accrue interest normally, but would still be guaranteed to be worth $2,000 after 20 years.
Taxation and Penalties
Interest from Series EE bonds is subject to federal income tax but exempt from state and local taxes. You can defer reporting the interest until you cash the bond or it reaches final maturity at 30 years. Note that if you cash a bond before 5 years, you will lose the last three months of interest as a penalty.