1. What is the I Bond Calculator?

The I Bond Calculator estimates the value of U.S. Treasury Series I savings bonds based on the fixed rate, semiannual inflation rate, principal amount, and holding periods. It uses the official TreasuryDirect formula for accurate calculations.

2. How Does the Calculator Work?

The calculator uses the I Bond formula:

Where:

• \( \text{Fixed Rate} \) — Base rate set at purchase (unitless)
• \( \text{Semiannual Inflation Rate} \) — Current inflation adjustment (unitless)
• \( \text{Principal} \) — Initial investment amount (USD)
• \( \text{Periods} \) — Number of 6-month periods held

Explanation: The composite rate combines the fixed rate with inflation adjustments, and the value compounds every 6 months.

3. Importance of I Bond Calculation

Details: Accurate I Bond valuation helps investors understand their inflation-protected returns and plan for future savings goals.

4. Using the Calculator

Tips: Enter the fixed rate (e.g., 0.0025 for 0.25%), current semiannual inflation rate, principal amount, and number of 6-month periods held. All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: Where do I find current I Bond rates?
A: Current rates are published on TreasuryDirect.gov every May and November.

Q2: How often does the value compound?
A: I Bonds compound semiannually (every 6 months).

Q3: Are there penalties for early redemption?
A: Bonds redeemed within 5 years forfeit the last 3 months of interest.

Q4: What's the minimum investment?
A: Electronic I Bonds have a $25 minimum; paper bonds require $50 increments.

Q5: Are I Bonds taxable?
A: Federal tax applies but can be deferred until redemption; state/local taxes don't apply.