Savings Bond Calculator — TreasuryDirect (2024)

FAQs

How much will a $10000 I bond be worth in 6 months? ›

This composite rate of TreasuryDirect Series I Savings Bond, applied to $10,000 in I bonds, would earn a guaranteed $215 in interest over the next six months (not $430, that's because it's an annualized rate) — but you cannot cash in your bond until you've held it for a year. So why even mention the six-month take?

As a rule of thumb, a $200 savings bond (that you would have paid $100, so half its face value) should be worth at the very least $200 after 20 years. That's because the Treasury guarantees a bond will reach its face value after a maximum of 20 years.

That said, I bonds do have some disadvantages, such as the fact that the bonds cannot be redeemed for one year after purchase and their early redemption penalties. If you redeem your I bond within five years of purchasing it, you'll lose the last three months of interest the bond earns.

SERIES I BONDS ISSUED SEPTEMBER 1998 AND THEREAFTER All Series I bonds reach final maturity 30 years from issue. Series I savings bonds earn interest through application of a composite rate.

Savings bonds are a government-backed, reliable investment that earn interest, reaching full maturity after 30 years.

While there's no limit on how often you can buy I bonds, there is a limit on how much a given Social Security number can purchase annually. Here are the annual limits: Up to $10,000 in I bonds annually online. Up to $5,000 in paper I bonds with money from a tax refund.

Series EE savings bonds are a low-risk way to save money. They earn interest regularly for 30 years (or until you cash them if you do that before 30 years). For EE bonds you buy now, we guarantee that the bond will double in value in 20 years, even if we have to add money at 20 years to make that happen.

Do savings bonds double after 10 years? ›

EE bonds you buy now have a fixed interest rate that you know when you buy the bond. That rate remains the same for at least the first 20 years. It may change after that for the last 10 of its 30 years. We guarantee that the value of your new EE bond at 20 years will be double what you paid for it.

If you want full value, you should hold the Series EE bonds at least until maturity, and if you want extra, you can hold them until 30 years. But once 30 years have passed, it's a good idea to cash them in because you won't get any extra benefit.

You can get your cash for an EE or I savings bond any time after you have owned it for 1 year. However, the longer you hold the bond, the more it earns for you (for up to 30 years for an EE or I bond). Also, if you cash in the bond in less than 5 years, you lose the last 3 months of interest.

If you moved your EE bond into a TreasuryDirect account, we pay you for the bond as soon as it reaches 30 years and stops earning interest. If you still have a paper EE bond, check the issue date. If that date is more than 30 years ago, it is no longer increasing in value and you may want to cash it.

After the one-year mark, you can go ahead and cash in your bond, but you will get hit with a penalty of three months' interest earned on the bond. There is no penalty if you simply hold onto the bond after five years.

Hence, if a two-year savings account containing $1,000 pays a 6% interest rate compounded daily, it will grow to $1,127.49 at the end of two years.

If your savings bond from a Series other than EE, I, or HH has finished its interest-earning life, you could cash it and use the money for something else – a project, a financial need, or a new investment like an interest-earning savings bond or other Treasury security.

Zero Coupon Bonds

For example, a $1000 bond might be traded on the open market at a cost of $600, to be paid in full after 10 years.

Variable interest rates are a risk you can't discount when you buy an I bond, and it's not like you can just sell the bond when the rate falls. You're locked in for the first year, unable to sell at all. Even after that, there's a penalty of three months' interest if you sell before five years.

Another advantage is that TIPS make regular, semiannual interest payments, whereas I Bond investors only receive their accrued income when they sell. That makes TIPS preferable to I Bonds for those seeking current income.

Why bonds are not a good investment? ›

If an investor wants a steady income stream, a Treasury bond might be a good choice. However, if interest rates are rising, purchasing a bond may not be a good choice since the fixed rate of interest might underperform the market in the future.

EE Bond and I Bond Differences

EE bonds offer a guaranteed return that doubles your investment if held for 20 years. There is no guaranteed return with I bonds. The annual maximum purchase amount for EE bonds is $10,000 per individual; you can purchase up to $15,000 in I bonds per year.

Table of Contents. A $5,000 surety bond can cost as little as $100 for applicants with a good credit score, or go as high as $500 for applicants with bad credit. As you can see, premiums for applicants with good credit are no more than 2.5%. Costs can go as high as 10% for applicants with a credit score lower than 600.

You can skip paying taxes on interest earned with Series EE and Series I savings bonds if you're using the money to pay for qualified higher education costs. That includes expenses you pay for yourself, your spouse or a qualified dependent. Only certain qualified higher education costs are covered, including: Tuition.

Series HH bonds can't be cashed in at a bank or other financial institution. Instead, you can cash them in by mail through TreasuryDirect.gov. Complete FS Form 1522 and mail your bonds with the form to the address provided. Your funds will be transferred to your checking or savings account via direct deposit.

Can I cash it in before 30 years? You can cash in (redeem) your I bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest.

Banks and credit unions can redeem savings bonds over the counter.

$10,000 limit: Up to $10,000 of I bonds can be purchased, per person (or entity), per year. A married couple can each purchase $10,000 per year ($20,000 per year total). 7.12% interest: The yield on I bonds has two components—a fixed rate and an inflation rate.

The limit is per person — so if you're married, each spouse is allowed to purchase $10,000 in I bonds (plus the paper bonds if they have a tax return). You can also purchase up to $10,000 in I Bonds for your children, but they must be used for the child, to save for college, perhaps.

Yes, you are required to pay federal income taxes on the interest earned by inherited series I savings bonds. The interest is taxed in the year it is earned and must be reported on the beneficiary's tax return. The amount of tax owed depends on the beneficiary's tax bracket and the amount of interest earned.

Do savings bonds ever go bad? ›

Series EE and I bonds mature 30 years from their issue date.

Savings bonds are guaranteed by the federal government and will not lose money. However, if you cash them in before maturity, you may incur a penalty. If you cash in a Series EE or Series I Bond during the first five years, you'll lose the last three months of interest.

Paper savings bonds were once available in financial institutions, including banks and credit unions. But because of the U.S. Treasury Department's move to a virtual system, you can no longer do this. The sole exception to this rule is if you buy a Series I savings bond through your tax refund.

U.S. savings bonds are ultra-safe offer tax advantages, especially when used for eligible education costs. However, other investments such as stocks and mutual funds typically produce higher rates of return, and the government also limits the amount of savings bonds investors can purchase every year.

In general, though, a savings bond is sold as a zero-coupon bond at a discount, and will reach its full value at its maturity. Therefore, savings bonds mature to their full face value.

10 Year Treasury Rate is at 3.69%, compared to 3.80% the previous market day and 2.74% last year. This is lower than the long term average of 5.89%.

When those bonds mature and stop earning interest, it is time to redeem them. Redeeming bonds is easy - just take them to a local bank or send them to the Bureau of the Fiscal Service.

The current bond composite rate is 4.3%. That rate applies for the first six months for bonds issued from May 2023 to October 2023. For example, if you purchased I bonds on May 1, 2023, the 4.3% rate would be in effect until Oct.

When Do EE Bonds Mature? EE bonds mature 30 years after the original issue date. Although you can cash out EE bonds after one year, they earn interest for 30 years and are guaranteed to double in value at 20 years, regardless of the current interest rate.

Sole owner

The individual owns the U.S. Savings Bond if only his or her name appears on it. The Social Security Number shown on a bond is not proof of ownership. EXAMPLE: A U.S. Savings Bond title reads, “John Smith.” Only John Smith can cash that bond.

Is it better to hold cash or bonds? ›

Sitting in cash also presents an opportunity cost as it forgoes potentially better investments. Bonds provide interest income that often meets or exceeds the rate of inflation, and with the potential for capital gains if bought at a discount.

Get a certified copy of the death certificate for everyone who has died who is named on any of the bonds. Have each person who is entitled to a distributed bond also fill out and sign the appropriate forms: If they want cash for their bond: FS Form 1522.

While the Treasury will not penalize you for holding a U.S. Savings Bond past its date of maturity, the Internal Revenue Service will. Interest accumulated over the life of a U.S. Savings Bond must be reported on your 1040 form for the tax year in which you redeem the bond or it reaches final maturity.

Maturity dates for Series EE bonds

Currently, Series EE bonds are guaranteed to earn a fixed interest rate for 20 years, which is when the bond matures. At 20 years, the government ensures that you will be paid double the face value of the bond.

After 30 years, these bonds stop earning more interest. A $50 Series EE savings bond with a picture of President George Washington that was issued in January 1986 was worth $113.06 as of December.

Interest from your bonds goes on your federal income tax return on the same line with other interest income.

If you have cashed paper savings bonds, you will receive a 1099-INT in the mail.

There are circ*mstances under which a bank can refuse to issue payment for a bond, or in fact may be legally unable to do so. In these cases, the bearer may have to visit a Federal Reserve Bank Savings Bond Processing Site to redeem the bond.

This fixed rate stays with those I Bonds throughout the 30 years that they earn interest. The current semiannual inflation rate of 3.38% will reset every 6 months following the purchase, or renewal, of your I bond.

Series I Savings Bonds

The combined rate is currently 6.89% for bonds issued between Nov. 1, 2022 and April 30, 2023. Put $10,000 into I bonds and you can earn almost $700 this year — assuming the bond's variable inflation rate remains roughly the same.

What is the interest rate for I bonds for 6 months? ›

Basic Info. 6 Month Treasury Rate is at 5.44%, compared to 5.46% the previous market day and 1.52% last year. This is higher than the long term average of 2.76%. The 6 Month Treasury Bill Rate is the yield received for investing in a US government issued treasury security that has a maturity of 6 months.

5 Year Treasury Rate is at 3.74%, compared to 3.81% the previous market day and 2.81% last year.

Currently, Series EE bonds are guaranteed to earn a fixed interest rate for 20 years, which is when the bond matures. At 20 years, the government ensures that you will be paid double the face value of the bond.

Summary: An investment of $10000 today invested at 6% for five years at simple interest will be $13,000.

If you had a monthly rate of 5% and you'd like to calculate the interest for one year, your total interest would be $10,000 × 0.05 × 12 = $6,000.

Interest on $100,000

Even with a well-diversified portfolio and minimal living expenses, this amount is not high enough to provide for most people. Investing this amount in a low-risk investment like a savings account with a rate between 2% to 2.50% of interest each year would return $2,000 to $2,500.

May 1, 2023. Series EE savings bonds issued May 2023 through October 2023 will earn an annual fixed rate of 2.50% and Series I savings bonds will earn a composite rate of 4.30%, a portion of which is indexed to inflation every six months. The EE bond fixed rate applies to a bond's 20-year original maturity.

I bonds issued from May 1, 2023, to Oct. 31, 2023, have a composite rate of 4.30%. That includes a 0.90% fixed rate and a 1.69% inflation rate. Because I bonds are fully backed by the U.S. government, they are considered a relatively safe investment.

If you are looking to protect your principal and guard against inflation, I bonds are still worth it long term — even with them down from the eye-popping 9.62 percent rate from last year. Even as inflation continues to retreat, you're guaranteed at least six months of the yield available at the time of your purchase.

How often do 1 year Treasury bonds pay interest? ›

Both bonds and notes pay interest every six months.

EE Bond and I Bond Differences

The interest rate on EE bonds is fixed for at least the first 20 years, while I bonds offer rates that are adjusted twice a year to protect from inflation. EE bonds offer a guaranteed return that doubles your investment if held for 20 years. There is no guaranteed return with I bonds.

Both EE and I savings bonds earn interest monthly.