Calculate Series Ee Bonds

Series EE Bond Value Calculator

(e.g., $25, $50, $100, $500, $1000, $5000, $10000)

January February March April May June July August September October November December

(e.g., 0.10% for bonds issued after May 2005. This calculator uses a single assumed rate for projection.)

Please enter valid numbers for all fields.

= 240 && currentValue < (principal * 2)) { currentValue = principal * 2; // Once the guarantee is met, subsequent interest accrues on the doubled amount // This simplified model assumes the assumedRate continues on the new base. } } return currentValue; } var currentProjectedValue = calculateValueWithGuarantee(purchasePrice, bondAgeMonths, assumedRate); var valueAt20Years = calculateValueWithGuarantee(purchasePrice, 240, assumedRate); // 20 years = 240 months var valueAt30Years = calculateValueWithGuarantee(purchasePrice, 360, assumedRate); // 30 years = 360 months // Display results document.getElementById('bondAge').innerText = bondAgeYears.toFixed(1) + ' years (' + bondAgeMonths + ' months)'; document.getElementById('currentProjectedValue').innerText = '$' + currentProjectedValue.toFixed(2); document.getElementById('valueAt20Years').innerText = '$' + valueAt20Years.toFixed(2); document.getElementById('valueAt30Years').innerText = '$' + valueAt30Years.toFixed(2); document.getElementById('result').style.display = 'block'; } // Set default purchase month to a reasonable value (e.g., January) document.addEventListener('DOMContentLoaded', function() { var currentYear = new Date().getFullYear(); document.getElementById('purchaseYear').value = currentYear – 23; // Example: 23 years ago document.getElementById('purchaseMonth').value = 1; // January });

Understanding Series EE Bonds and Their Value

Series EE bonds are a type of savings bond issued by the U.S. Treasury. They are a popular, low-risk investment option, often purchased as gifts or for long-term savings goals like education or retirement. Understanding how their value grows can be a bit complex due to their unique features.

Key Characteristics of Series EE Bonds:

• Purchase Price: EE bonds are typically purchased at half their face value. For example, a $100 bond costs $50. The calculator's "Original Purchase Price" refers to the amount you actually paid.
• Maturity Period: They earn interest for 30 years from their issue date.
• Interest Accrual: Interest is compounded semi-annually (every six months).
• Guaranteed Doubling: A significant feature is that EE bonds are guaranteed to double in value after 20 years. If the prevailing interest rate during those 20 years would result in a value less than double the purchase price, the Treasury adjusts the value up to the doubled amount at the 20-year mark. After 20 years, interest continues to accrue on this new (potentially higher) base value until maturity or redemption.
• Interest Rates: The interest rate for EE bonds can vary significantly based on their issue date. Bonds issued before May 2005 had variable rates, while those issued from May 2005 onwards earn a fixed rate (currently 0.10%). This fixed rate applies for the entire 30-year life of the bond.
• Tax Advantages: Interest earned on EE bonds is exempt from state and local income taxes. Federal income tax on the interest can be deferred until the bond is redeemed or matures. In some cases, interest may be tax-free if used for qualified higher education expenses.
• Redemption: Bonds can be redeemed after one year, but if redeemed before five years, you forfeit the last three months of interest.

How This Calculator Works:

This Series EE Bond Value Calculator provides a projection of your bond's value based on the information you provide. Here's what to keep in mind:

• Assumed Annual Interest Rate: The calculator uses a single "Assumed Annual Interest Rate" for its projections. This is a simplification. Actual EE bond rates depend on their specific issue date and can be fixed or variable. For bonds issued after May 2005, the rate is fixed at 0.10%. For older bonds, you might need to look up historical rates or use an average.
• 20-Year Doubling Guarantee: The calculator incorporates the 20-year doubling guarantee. If the calculated value at 20 years using your assumed rate is less than double the original purchase price, the calculator will show the doubled amount. Interest for subsequent years (up to 30) will then accrue on this doubled value.
• Semi-Annual Compounding: The calculations reflect the semi-annual compounding of interest.

Important Note: For the most accurate and official valuation of your Series EE bonds, especially those with variable rates or complex histories, it is always recommended to use the official TreasuryDirect Bond Value Calculator.

Example Calculation:

Let's say you purchased a Series EE bond for $50 (which has a face value of $100) in January 2000, and you want to project its value using an assumed annual interest rate of 0.10% (typical for bonds issued after May 2005, but used here for illustration).

• Original Purchase Price: $50
• Purchase Date: January 2000
• Assumed Annual Interest Rate: 0.10%

As of October 2023 (23 years, 9 months later):

• Bond Age: 23.8 years (285 months)
• Current Projected Value: Approximately $100.35 (The bond doubled to $100 at its 20-year mark, and then continued to earn 0.10% on that $100 for the remaining 3.8 years.)
• Value at 20 Years (Guaranteed Minimum): $100.00 (The bond is guaranteed to double by this point.)
• Value at 30 Years (Maturity): Approximately $101.00 (Interest continues to accrue on the $100 doubled value for the remaining 10 years.)

This example demonstrates how the 20-year doubling guarantee significantly impacts the bond's value, especially when the assumed interest rate is low.