Savings Bond Calculator

Quick Facts

Current I Bond Rate

4.26%

May 2026 - Oct 2026 (treasurydirect.gov)

EE Bond Guarantee

Doubles in 20 years

Guaranteed by US Treasury

Minimum Hold Period

1 Year

Penalty if cashed before 5 years

Annual Purchase Limit

$10,000 per type

Plus $5,000 via tax refund

Key Takeaways

Series EE Bonds are guaranteed to double in value after 20 years
Series I Bonds protect against inflation with variable rates
You must hold bonds for at least 1 year before cashing
Cashing before 5 years forfeits the last 3 months of interest
Annual purchase limit is $10,000 per bond type ($15,000 with tax refund for I Bonds)

What Are US Savings Bonds?

US Savings Bond Types Comparison Reference (2024)
Feature	Series I (I Bond)	Series EE	Notes
Interest rate	Inflation-adjusted (CPI + fixed rate)	Fixed rate (currently 2.70% for bonds issued Nov 2023–Apr 2024)	I bond rate resets every 6 months (May 1 and Nov 1)
2024 composite rate	~4.28% (Nov 2023–Apr 2024)	2.70%	Check TreasuryDirect.gov for current rates
Purchase limit	$10,000/year electronic + $5,000 paper (tax refund)	$10,000/year per person	Both are per Social Security Number per calendar year
Minimum hold	12 months (cannot redeem before)	12 months	Earns no interest if redeemed before 1 year
Early redemption penalty	3 months interest if redeemed before 5 years	3 months interest if redeemed before 5 years	No penalty after 5 years
Maturity	Earns interest for 30 years	Earns interest for 30 years; guaranteed to double in 20 years	EE bonds issued today are guaranteed to double by year 20
Tax treatment	Federal only; state/local exempt	Federal only; state/local exempt	Education tax exclusion may apply for both types
Note: Paper I bonds can only be purchased via IRS Form 8888 when filing a tax return. Electronic bonds are purchased at TreasuryDirect.gov.

Series I Bond Rate History Reference (Recent Periods)
Period	Composite Rate	Fixed Rate	Inflation Component	Notes
May 2022–Oct 2022	9.62%	0.00%	9.62%	Highest I bond rate in over 20 years; driven by CPI surge
Nov 2022–Apr 2023	6.89%	0.40%	6.49%	Still historically high; fixed rate increased
May 2023–Oct 2023	4.30%	0.90%	3.40%	Rate normalizing; inflation declining
Nov 2023–Apr 2024	5.27%	1.30%	3.97%	Fixed rate highest since 2007
May 2024–Oct 2024	4.28%	1.30%	2.96%	Rate declined as CPI moderated
Note: The composite rate = fixed rate + (2 × semiannual inflation rate). The fixed rate is permanent for the life of the bond; the inflation component resets every 6 months based on CPI-U changes. Current rates at TreasuryDirect.gov.

Savings Bond Tax Treatment Reference
Tax Type	I Bonds	EE Bonds	Notes
Federal income tax	Yes; deferred until redemption or maturity	Yes; deferred until redemption or maturity	Interest not taxed annually while holding (accrual method optional)
State and local tax	Exempt	Exempt	Major advantage over CDs and money market accounts
Estate and gift tax	Subject to federal estate/gift tax	Subject to federal estate/gift tax	—
Education exclusion	May be excluded if used for qualified education expenses	May be excluded if used for qualified education expenses	Phase-out at higher incomes; see IRS Publication 970
Reporting	Form 1099-INT issued at redemption	Form 1099-INT issued at redemption	Or annually if owner elects accrual method
Note: State/local tax exemption is a significant benefit in high-tax states (CA, NY, etc.). A CD or TIPS paying the same nominal rate results in a higher effective after-tax yield for savings bonds held to maturity.

US Savings Bonds are low-risk, government-backed securities that earn interest over time. They are issued by the US Department of the Treasury and are one of the safest investment options available, backed by the full faith and credit of the US government.

There are two main types of savings bonds currently available for purchase:

Series EE Bonds

Series EE Bonds earn a fixed rate of interest for up to 30 years. The most attractive feature is that EE Bonds purchased after May 2005 are guaranteed to double in value after 20 years, regardless of the stated interest rate. This effectively guarantees a 3.5% annual return if held for 20 years.

Series I Bonds

Series I Bonds (I Bonds) are inflation-protected savings bonds. They earn a combination of a fixed rate plus an inflation rate that adjusts every six months based on the Consumer Price Index (CPI). This makes them an excellent hedge against inflation.

Feature	Series EE Bond	Series I Bond
Interest Rate	Fixed rate	Fixed + inflation rate
Rate Changes	Never	Every 6 months (inflation portion)
Doubling Guarantee	Yes, at 20 years	No
Purchase Limit	$10,000/year	$10,000/year (+$5,000 via tax refund)
Best For	Long-term savings, education	Inflation protection

How Savings Bond Interest Is Calculated

Value = Face Value x (1 + r/2)²ⁿ

r = Annual Interest Rate

n = Number of Years Held

Savings bonds compound interest semiannually (every 6 months). For Series EE Bonds, the rate is fixed at purchase. For I Bonds, the composite rate changes every May and November based on inflation data.

Series I Bond Rate Calculation

The composite rate for I Bonds is calculated using this formula:

Composite Rate = Fixed Rate + (2 x Inflation Rate) + (Fixed Rate x Inflation Rate)

Pro Tip: Timing Your I Bond Purchase

I Bond rates are announced in May and November. If a new rate is higher, buy at the end of the month to lock in the previous rate for 6 months, then get the new rate. If it's lower, buy at the beginning of the month to get more time at the current rate.

When Should You Cash Savings Bonds?

Understanding the optimal time to cash your savings bonds can significantly impact your returns:

Minimum holding period: You must hold bonds for at least 12 months
Early redemption penalty: If cashed before 5 years, you forfeit the last 3 months of interest
Optimal timing: Cash right after interest is credited (every 6 months from issue date)
Maximum term: Bonds stop earning interest after 30 years

EE Bond 20-Year Guarantee

If you hold an EE Bond for 20 years, the Treasury will make a one-time adjustment to ensure the bond is worth at least double its purchase price. This is a powerful guarantee that effectively provides a 3.5% annual return, regardless of the stated fixed rate.

Tax Benefits of Savings Bonds

Savings bonds offer several tax advantages:

Federal tax deferral: You don't pay federal income tax until you cash the bond
State and local tax exempt: Interest is never subject to state or local income tax
Education tax exclusion: Interest may be completely tax-free if used for qualified education expenses (income limits apply)

Frequently Asked Questions

Where can I buy savings bonds?

You can purchase electronic savings bonds directly from TreasuryDirect.gov. Paper I Bonds can also be purchased with your federal tax refund using IRS Form 8888. Banks no longer sell paper savings bonds.

What happens to savings bonds after 30 years?

After 30 years, savings bonds reach final maturity and stop earning interest. You should cash them promptly after this point. Many older bonds (Series E, EE, and I) have stopped earning interest and should be cashed immediately.

Can I give savings bonds as gifts?

Yes! You can purchase savings bonds as gifts through TreasuryDirect. You need the recipient's Social Security Number and TreasuryDirect account information. Gift bonds count toward the recipient's annual purchase limit, not yours.

Are savings bonds a good investment?

Savings bonds are excellent for conservative investors seeking safety and tax advantages. I Bonds are particularly valuable during high inflation periods. However, for long-term growth, diversified stock index funds historically provide higher returns. Consider savings bonds as part of a balanced portfolio.

How do I find the value of old savings bonds?

Use the Treasury's Savings Bond Calculator at TreasuryDirect.gov or use this calculator. You'll need the bond's series, denomination, issue date, and serial number. For paper bonds, this information is printed on the bond certificate.

Can I use this on mobile?

Yes — the calculator is designed to work on any device. For complex multi-input calculations on small screens, landscape orientation gives more room to see all fields and results simultaneously.

Frequently Asked Questions

How do Series I bonds work and how is the interest rate calculated?

Series I bonds (I bonds) are US government savings bonds designed to protect against inflation. They are issued by the US Treasury and purchased through TreasuryDirect.gov. How the interest rate works: I bonds use a composite rate formula: composite rate = fixed rate + (2 × semiannual inflation rate). The fixed rate: set at the time of purchase and remains constant for the life of the bond. For example, bonds issued in November 2023 had a fixed rate of 1.30%. This is your "real return" above inflation. The inflation component: based on changes in the CPI-U (Consumer Price Index for all Urban consumers) over the prior 6-month period. It resets every May 1 and November 1. If inflation is negative for a period, the composite rate will be lower than the fixed rate (but never goes below 0%). The composite rate is applied for 6-month periods: your bond earns rate A for months 1–6 after purchase, then rate B for months 7–12, then rate C, etc. This means the rate you earn depends on both when you purchased and when the rate announcements fall. Purchase limits: electronic: $10,000 per person (SSN) per calendar year. Paper: up to $5,000 per year if purchased via IRS tax refund (Form 8888). Married couples can each buy $10,000 ($20,000 together), and can also buy for children or trusts for additional capacity. Time restrictions: minimum hold: 1 year (cannot redeem in first 12 months). Early redemption penalty: if redeemed within the first 5 years, you forfeit the last 3 months of interest. After 5 years: no penalty; full redemption available at any time. Bonds earn interest for up to 30 years. I bonds are non-marketable — they cannot be sold to a third party (unlike Treasury bonds and notes). You can only redeem them through TreasuryDirect.gov or a financial institution.

What is the difference between I bonds and EE bonds?

Both I bonds and EE bonds are US Treasury savings bonds, but they differ significantly in how they earn interest and their best use cases. Series I bonds (I bonds): interest rate: variable, inflation-adjusted. Composite rate = fixed rate + (2 × semiannual CPI-U inflation component). Best use case: inflation protection; emergency fund substitute; saving for expenses 1–5 years out in inflationary environments. Risk: interest rate risk (rate could drop close to 0% if deflation occurs). Historically, during normal inflation periods, I bonds typically outperform bank savings accounts. Series EE bonds: interest rate: fixed for the life of the bond (set at purchase). The fixed rate is often lower than I bonds in normal environments. Special guarantee: EE bonds are guaranteed to double in value at 20 years (a guaranteed 3.53% effective return over 20 years, regardless of the stated rate). Best use case: long-term savings (holding exactly 20 years to get the guaranteed doubling). Less attractive if redeemed before 20 years. Key comparison: inflation environment: I bonds win — their rate rises with inflation. Deflationary/low inflation environment: EE bonds may win if the fixed rate is competitive. Long-term (exactly 20 years): EE bonds' guaranteed doubling = effective 3.53% annual return regardless of stated rate. Liquidity: same — both require 1-year hold; both have 3-month interest penalty if redeemed before 5 years. Common strategy: buy I bonds for near-term inflation protection (1–5 year time horizon). Buy EE bonds for 20-year savings goals where the guaranteed doubling guarantee is valuable. Both together for a laddered savings bond strategy.

What is the annual purchase limit for savings bonds?

The US Treasury imposes annual purchase limits for savings bonds to prevent large-scale arbitrage of the tax advantages and competitive interest rates. Series I bonds: electronic (TreasuryDirect.gov): $10,000 per person per calendar year. Paper (via tax refund, Form 8888): up to $5,000 per person per year. Total maximum per person: $15,000 per year (but paper I bonds are only available as a tax refund option). Series EE bonds: electronic only: $10,000 per person per calendar year. Per Social Security Number: both limits are per SSN (Social Security Number), not per household. Strategies to buy more than $10,000 in I bonds: married couples: each spouse can buy $10,000 electronic → $20,000 total. Trusts: a living trust (revocable or irrevocable) with its own EIN can purchase $10,000. Businesses: a sole proprietorship, LLC, or corporation can purchase $10,000 per EIN. Minor children: parents can purchase I bonds for minor children at TreasuryDirect (in a linked account) at $10,000 per child. Tax refund: get up to $5,000 in paper I bonds by electing to receive your federal tax overpayment as bonds (Form 8888). Hypothetical family of 4 (parents + 2 children): $10,000 per parent = $20,000. $10,000 per child = $20,000. $5,000 in paper bonds (one parent's tax refund) = $5,000. Trust = $10,000. Total: up to $55,000 in I bonds in one calendar year. Important: the calendar year resets on January 1 — purchases made December 31 and January 1 are in different years and each count toward their respective year's limit.

When should I redeem savings bonds and what are the tax implications?

The timing of savings bond redemption significantly affects both your net return and your tax liability. Optimal redemption timing considerations: 1-year minimum hold: you cannot redeem savings bonds before 12 months from issue date. Attempting to redeem early results in rejection. 5-year penalty window: if redeemed between 1 and 5 years, you forfeit the last 3 months of interest. To maximize, try to redeem just after an interest-accrual month (savings bond interest accrues monthly). Redemption just after a full 6-month rate period: since I bonds earn interest at one rate for 6-month periods, redeeming just after completing a 6-month period (and capturing the last 3 months of the next period) is optimal after the 5-year mark. After 30 years: bonds stop earning interest. Redeem before or at 30 years. Tax implications at redemption: federal income tax: all interest earned on the bond is reported as ordinary income in the year of redemption (or each year if accrual method was elected annually). You receive Form 1099-INT from your custodian. State and local tax: savings bonds are exempt — zero state or local tax on bond interest (major benefit in high-tax states). Education tax exclusion (IRS Form 8815): if you use savings bond proceeds to pay for qualified higher education expenses (tuition and fees), the interest may be federally tax-free. Phase-out: this exclusion phases out at higher MAGI ($91,850–$106,850 for single filers in 2024; $137,800–$167,800 for MFJ) — check IRS Publication 970 for current limits. Naming strategy for education exclusion: bonds must be issued in the parent's name (not the child's) to qualify for the exclusion. Estate and inheritance: bonds may transfer to a named co-owner or beneficiary. Interest is typically reported by the estate or inheritor at time of redemption. Timing for tax optimization: consider redeeming in a low-income year (job change, retirement year) to minimize the tax bracket impact. Spreading redemptions over multiple tax years reduces annual taxable income concentration.

Quick Facts

Your Bond Value

Value Over Time

Key Takeaways

What Are US Savings Bonds?

Series EE Bonds

Series I Bonds

How Savings Bond Interest Is Calculated

Series I Bond Rate Calculation

Pro Tip: Timing Your I Bond Purchase

When Should You Cash Savings Bonds?

EE Bond 20-Year Guarantee

Tax Benefits of Savings Bonds

Frequently Asked Questions

Frequently Asked Questions