Savings Bond Calculator Guide

Why we don’t estimate savings bond values

A savings bond’s value depends on its series, its issue month, the interest rates that applied in every period since it was issued, and the Treasury’s own rounding and redemption rules. Older bonds were subject to rules that changed several times over the decades. Getting every case exactly right requires the Treasury’s official redemption tables, and a wrong estimate could mislead you about money you own.

Rather than offer a calculator that might be wrong, this page explains how savings bonds work so you can understand the official value and make good decisions about when to cash them. If we add a calculator in the future, it will cover only cases we can verify against the Treasury’s published values, and it will say so clearly.

Series EE bonds

• Fixed rate. EE bonds issued since May 2005 earn a fixed interest rate set when the bond is issued.
• The 20-year guarantee. The Treasury guarantees that an EE bond will be worth at least twice its purchase price after 20 years. If the fixed rate has not doubled its value by then, the Treasury makes a one-time adjustment to make up the difference.
• 30 years of interest. EE bonds earn interest for 30 years, after which they stop earning.
• Older EE bonds. EE bonds issued before May 2005 followed different, mostly variable-rate rules. Their values are best checked with the official calculator.

Series I bonds

• Two-part rate. An I bond’s rate combines a fixed rate, which stays the same for the life of the bond, and an inflation rate based on changes in the Consumer Price Index (CPI-U).
• Updated twice a year. The Treasury announces new rates each May 1 and November 1. A bond’s inflation rate changes every six months from its issue date.
• Floor at zero. The combined rate cannot go below zero, so an I bond’s redemption value does not fall even during deflation.
• 30 years of interest. Like EE bonds, I bonds earn interest for 30 years.

Rules that apply to both

• Minimum holding period. You cannot cash a savings bond in its first 12 months.
• Early redemption penalty. If you cash a bond before it is five years old, you lose the last three months of interest.
• How interest builds. Interest is added to the bond’s value monthly and compounds semiannually. You receive it when you cash the bond.
• Taxes. Savings bond interest is subject to federal income tax but exempt from state and local income tax. You can usually report it each year or when you cash the bond. Some owners can exclude interest used for qualified higher-education expenses; check IRS guidance or a tax professional.
• Purchase limits. Electronic EE and I bonds are bought through TreasuryDirect. Annual purchase limits apply per person and per series; check TreasuryDirect for the current limits and for the option to buy paper I bonds with a federal tax refund.

When does a savings bond stop earning interest?

Current EE and I bonds stop earning interest 30 years after issue. Once a bond stops earning, there is no benefit to holding it longer, and it is generally worth cashing it and considering any tax due. Older series, such as Series E bonds and savings notes, have their own final maturity dates. See our guide Understanding Savings Bond Maturity.

Savings bonds compared with marketable Treasuries

Savings bonds cannot be sold to anyone else; you can only redeem them with the Treasury. Treasury bills, notes and bonds, by contrast, are marketable: their prices move with interest rates and they can be sold before maturity. To see current yields on marketable Treasuries, visit the Treasury rates dashboard.

Sources

• TreasuryDirect, Savings Bonds, EE Bonds and I Bonds.
• TreasuryDirect, Savings Bond Calculator.