Savings Bond Calculator

You buy a bond for its face value and it earns interest every month, compounded twice a year. The interest is added to the bond's value, not paid out. When you cash it in, you get the purchase price plus the interest you've earned. You can cash in after 12 months, with a penalty before five years, and the bond stops earning after 30 years.

A Series EE bond bought today is guaranteed to be worth at least twice its purchase price after 20 years, so a $5,000 purchase becomes at least $10,000. A Series I bond has no such promise, and its value depends on future inflation rates. For older paper bonds, use TreasuryDirect's savings bond calculator with the serial number and issue date.

Bonds stop earning interest at 30 years, so that's when they reach their final value. An EE bond continues earning its rate after doubling at 20 years. Using today's 2.90% EE rate, the value after 30 years is around 2.67 times the purchase price. Older bonds were sold under different terms, so check yours. There's no reason to hold a bond past 30 years, since it earns nothing more.

For bonds issued from November 2026 through April 2027, Series EE pays 2.90% and Series I pays a composite 5.51%. EE rates stay fixed for the bond's first 20 years. I bond rates change every six months as inflation changes, though each bond's fixed part stays the same for life. Treasury publishes current rates on TreasuryDirect.

EE bonds pay a known fixed rate and guarantee a doubling at 20 years, so they suit people who can hold that long. I bonds pay a rate that adjusts with inflation every six months, so they suit people who want to protect their purchasing power and may not hold for decades. Many investors compare the yearly return of each over their expected holding period.

You can buy up to $10,000 in electronic Series EE and up to $10,000 in electronic Series I per person each calendar year. That's a per-person limit, so a couple could buy twice as much. You can also buy bonds for a child in their name, or as gifts, though they count toward the recipient's limit once delivered. Purchases start at $25.

Your bond's redemption value won't fall. The rate on an I bond can't drop below zero, so its value can't decline, and Series EE earns its fixed rate. You do face inflation risk, since an EE bond's value might not keep up with rising prices. And if you cash in before five years, you give up the last three months of interest.

The usual milestones are after 5 years, when the penalty ends, after 20 years for an EE bond, when the doubling arrives, and at 30 years, when interest stops. Beyond those, you might want to compare the bond's current rate with other safe options. Since you pay federal tax in the year you cash in, a lower-income year can reduce the tax bill.

Interest is subject to federal income tax but exempt from state and local income tax. You can report it each year or wait until you redeem the bond or it stops earning at 30 years. Some people can exclude interest used for qualified education expenses if they meet income limits and other rules. See the TreasuryDirect tax page.

You buy electronic bonds at TreasuryDirect. Banks no longer sell them. You redeem electronic bonds through your TreasuryDirect account, and the money goes to your bank account. Many banks will cash paper bonds, usually for their own customers. You can also mail paper bonds to the Treasury with the right form and receive payment by direct deposit or check.

They're a low-risk place to keep money you can leave alone for at least a year, and they aren't meant for high growth. They can work for emergency reserves beyond the first year, gifts or the safe part of a portfolio. Compare the rate with high-yield savings, CDs and Treasury bills. Over decades, stocks have returned more, with a lot more risk.