1. What is the Savings Bonds Calculator?

The Savings Bonds Calculator estimates the current value of U.S. savings bonds including Series EE and Series I bonds. It calculates the face value plus accrued interest based on Treasury rates.

2. How Does the Calculator Work?

The calculator uses the Treasury Direct formula:

Where:

• \( Face\ Value \) — Original bond denomination
• \( Accrued\ Interest \) — Interest earned based on bond type and holding period

Explanation: The calculation accounts for the bond's issue date, type (EE or I), and current Treasury rates to determine the exact value.

3. Importance of Savings Bonds Calculation

Details: Accurate bond valuation is crucial for financial planning, tax reporting, and understanding investment growth over time.

4. Using the Calculator

Tips: Enter the bond's face value, select the bond type (Series EE or I), and provide the exact issue date. All values must be valid.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between Series EE and Series I bonds?
A: Series EE bonds have a fixed rate, while Series I bonds have a composite rate combining fixed and inflation-adjusted rates.

Q2: How often does interest compound?
A: Interest compounds semiannually for both Series EE and I bonds.

Q3: When can I redeem my savings bonds?
A: Bonds must be held for at least 1 year, and redeeming before 5 years forfeits the last 3 months of interest.

Q4: Are savings bonds taxable?
A: Interest is subject to federal tax but exempt from state/local taxes. Tax can be deferred until redemption.

Q5: Where can I find exact Treasury rates?
A: Current rates are published monthly on TreasuryDirect.gov.