How to Calculate Series EE Savings Bonds
- 1). Check the EE savings bond issue date. An EE bond must be at least 1 year old before it can be redeemed. The U.S. Department of the Treasury recommends checking when interest is added to a bond before redemption. Interest is added monthly to bonds issued after May 1997; interest is added every six months to bonds issued before May 1997.
- 2). Determine interest rates that affect the bond. Bonds issued after May 2005 earn interest at a fixed rate that can change every six months (on May 1 and Nov. 1). Older EE bonds, particularly those issued before May 1995, are based on a five-year treasury securities yield. The U.S. Department of the Treasury publishes a rate chart that can be accessed online.
- 3). Take possible penalties into consideration. Bonds that are less than five years from the original issue date are subject to a penalty of three months' interest.
- 4). Add interest to the amount originally paid for the bond at issue date. Subtract penalties to determine the final value of the bond.
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