Understand the value and growth of your US savings bonds. Whether you’ve inherited old paper bonds from a relative, want to track your TreasuryDirect purchases, or are deciding between Series EE and I Bonds, this guide explains how savings bond values work and how to calculate what yours are worth.
Types of US Savings Bonds
The US Treasury currently issues two types of savings bonds: Series I (I Bonds) and Series EE. Both are backed by the full faith and credit of the US government, making them among the safest investments available.
| Bond Type | Current Rate | How It Earns | Best For |
|---|---|---|---|
| Series I (I Bonds) | ~4.28%* | Fixed rate + inflation adjustment | Inflation protection |
| Series EE | 2.70% | Fixed rate, guaranteed to double in 20 yrs | Long-term, guaranteed growth |
*I Bond rate changes every 6 months based on inflation
The key difference: I Bonds protect against inflation by adjusting their rate semi-annually based on the Consumer Price Index. EE Bonds pay a fixed rate but guarantee to double in value after 20 years — effectively a minimum 3.5% return if held that long. For a deeper comparison, see I Bonds vs Treasury Bonds.
Series EE Bond Values
EE Bonds earn a fixed rate and are guaranteed to double after 20 years. This guarantee is what makes them interesting — even at today’s modest 2.70% rate, the Treasury will make up the difference at the 20-year mark to ensure your bond is worth double its purchase price.
EE Bond Growth Example
$1,000 EE Bond purchased in 2024 at 2.70%:*
| Year | With Interest (2.70%) | If Not Doubled Yet |
|---|---|---|
| 0 | $1,000 | Start |
| 5 | $1,142 | — |
| 10 | $1,305 | — |
| 15 | $1,491 | — |
| 20 | $1,704 | Adjusted to $2,000* |
| 25 | $2,287 | — |
| 30 | $2,720 | Stops earning |
*Treasury makes up the difference to ensure doubling at 20 years
The math behind the guarantee: At 2.70%, a bond would only grow to $1,704 after 20 years through compound interest alone. But the Treasury guarantees doubling, so they adjust the value to $2,000 at the 20-year mark. This makes EE Bonds effectively pay 3.5% annually when held for the full 20 years — regardless of the stated rate.
Historical EE Bond Rates
EE Bond rates have varied dramatically over the decades. If you have older bonds, they may be earning a very different rate than current issues:
| Issue Period | Rate |
|---|---|
| Nov 2024-Apr 2025 | 2.70% |
| May-Oct 2024 | 2.70% |
| Nov 2023-Apr 2024 | 2.70% |
| May-Oct 2023 | 2.50% |
| Nov 2022-Apr 2023 | 2.10% |
| May-Oct 2022 | 0.10% |
| 2020-2022 | 0.10% |
Older EE bonds may have exceptional rates. EE Bonds issued before 2005 used a variable rate formula and some earn 4-6%. Don’t cash these without checking their current rate first.
Series I Bond Values
I Bonds earn interest based on a fixed rate plus an inflation rate that adjusts semi-annually. This makes them an excellent hedge against inflation — when prices rise, so does your return. For complete details, see our I Bonds guide and I Bond rules and limits.
Current I Bond Rate Components
| Component | Current Rate |
|---|---|
| Fixed rate | 1.20% |
| Inflation rate | 1.54% (semi-annual) |
| Composite rate | ~4.28% |
How the composite rate works: The formula is: Composite = Fixed rate + (2 × Inflation rate) + (Fixed rate × Inflation rate). The fixed rate stays constant for the life of your bond, while the inflation component adjusts every May and November based on CPI data.
I Bond Value Example
$10,000 I Bond purchased in May 2024:*
| Month | Value* |
|---|---|
| May 2024 | $10,000 |
| Nov 2024 | $10,214 |
| May 2025 | $10,434 |
| Nov 2025 | $10,660 |
| May 2026 | $10,893 |
*Approximate based on composite rate; actual varies with inflation adjustments
Important: I Bond values don’t update daily like stocks. Interest is added monthly and compounded semi-annually. Your TreasuryDirect account shows the value as of the first of each month.
Historical I Bond Rates
I Bond rates peaked at 9.62% in May 2022 during the post-pandemic inflation surge — the highest rate since I Bonds were introduced in 1998. Rates have since normalized as inflation cooled.
| Period | Fixed Rate | Inflation Rate | Composite |
|---|---|---|---|
| Nov 2024 | 1.20% | 1.54% | 4.28% |
| May 2024 | 1.30% | 1.48% | 4.28% |
| Nov 2023 | 1.30% | 1.97% | 5.27% |
| May 2023 | 0.90% | 1.69% | 4.30% |
| Nov 2022 | 0.40% | 3.24% | 6.89% |
| May 2022 | 0.00% | 4.81% | 9.62% |
The fixed rate matters most long-term. The inflation component fluctuates, but the fixed rate stays with your bond forever. An I Bond from May 2024 with a 1.30% fixed rate will always earn 1.30% + inflation, while a bond from May 2022 with a 0.00% fixed rate only earns the inflation component.
Paper vs Electronic Bonds
The Treasury stopped selling paper savings bonds in 2012 (except through tax refunds). If you want to buy savings bonds today, you’ll need a TreasuryDirect account.
| Feature | Paper Bonds | Electronic (TreasuryDirect) |
|---|---|---|
| Purchase | No longer sold | Online purchase |
| Maximum/year | N/A | $10,000 per person |
| Value lookup | Treasury calculator | TreasuryDirect account |
| Redemption | At bank | Online |
| Tax refund | Can buy $5,000 paper I Bonds | Add to electronic account |
The tax refund loophole: The only way to still get paper I Bonds is through your federal tax refund. You can direct up to $5,000 of your refund to paper I Bonds using Form 8888. This is in addition to the $10,000 electronic limit, allowing a household to potentially invest $30,000+ in I Bonds per year.
Bond Redemption Timeline
Savings bonds have strict holding requirements. You cannot cash them during the first 12 months, and redeeming before 5 years costs you the last 3 months of interest as a penalty.
| Event | EE Bonds | I Bonds |
|---|---|---|
| Minimum hold | 12 months | 12 months |
| Early redemption penalty | 3 months interest if < 5 years | 3 months interest if < 5 years |
| Penalty-free | After 5 years | After 5 years |
| Stop earning | 30 years | 30 years |
Penalty math: The 3-month penalty sounds harsh, but it’s actually mild. After 2 years with a 5% rate, you’ve earned about 10% in interest and forfeit about 1.25%. Compare this to CD early withdrawal penalties, which can be 6+ months of interest.
Early Redemption Example
$10,000 I Bond cashed after 2 years at 5% average rate:*
| Item | Amount |
|---|---|
| Purchase value | $10,000 |
| Interest earned (2 years) | $1,025 |
| Penalty (3 months interest) | -$128 |
| Cash value | $10,897 |
Even with the penalty, 2-year I Bond returns often beat high-yield savings accounts and CDs when inflation is elevated.
Tax Considerations
Savings bond interest is subject to federal income tax but exempt from state and local taxes — a significant advantage for residents of high-tax states like California and New York.
When You Pay Taxes
| Option | When Taxed |
|---|---|
| Default: At redemption | Federal tax due when you cash |
| Annual accrual | Elect to report yearly (rare) |
The default is usually best. Most people wait until redemption to pay taxes, allowing decades of tax-deferred growth. The annual accrual method only makes sense in specific situations, like if you expect to be in a much higher tax bracket when you cash the bond.
Tax-Free for Education
Here’s where savings bonds get really interesting: if you use the proceeds to pay for qualified higher education expenses, the interest may be completely tax-free. This “education exclusion” makes savings bonds a powerful college savings tool.
| Requirement | Details |
|---|---|
| Bond type | I Bonds or EE Bonds |
| Used for | Higher education expenses |
| Income limits | Phase-out at higher incomes |
| Owner requirements | Registered in your name, 24+ when purchased |
Income limits apply: For 2026, the education exclusion begins phasing out at $96,800 (single) and $153,550 (married filing jointly). Above those thresholds, you’ll owe some or all of the regular tax. See our 529 plan guide for another education savings option.
Tax Rates on Bond Interest
| Federal Tax Bracket | Tax on $1,000 Interest |
|---|---|
| 12% | $120 |
| 22% | $220 |
| 24% | $240 |
| 32% | $320 |
Note: Savings bond interest is exempt from state and local taxes
State tax savings matter: If you live in a state with 5-10% income tax, the state tax exemption effectively boosts your return. A 4% I Bond return in California (with 13.3% top rate) is competitive with a 4.5% taxable CD.
Old Paper Bonds
Millions of Americans have old paper savings bonds tucked away in safe deposit boxes, filing cabinets, or inherited from relatives. Many have stopped earning interest, meaning they’re losing value to inflation every year.
Finding Value of Old Bonds
For paper bonds, use the official Treasury calculator: TreasuryDirect.gov/BC/SBCPrice
Enter:
- Series (EE, I, E, etc.)
- Denomination
- Issue date
- Serial number (optional)
Don’t throw away “matured” bonds. Even bonds that have stopped earning still have value — you can cash them for their final face value plus all accumulated interest. Some old E bonds are worth significantly more than their face value.
Bonds That Have Stopped Earning
| Series | Stopped Earning After |
|---|---|
| Series E | 30-40 years (varies by issue) |
| Series EE | 30 years |
| Series I | 30 years |
Action needed: Cash bonds that have stopped earning—they’re losing value to inflation
The Treasury estimates there are billions of dollars in matured savings bonds that haven’t been cashed. If you have old bonds from parents or grandparents, check their maturity dates. Series E bonds issued in the 1950s-1980s stopped earning decades ago.
I Bonds vs EE Bonds
Choosing between I Bonds and EE Bonds depends on your time horizon and inflation expectations. Here’s how they compare for different scenarios:
| Factor | I Bonds | EE Bonds |
|---|---|---|
| Current rate | ~4.28% | 2.70% |
| Rate type | Variable (inflation) | Fixed |
| Guaranteed doubling | No | Yes (at 20 years) |
| Inflation protection | Yes | No |
| Best holding period | Flexible | 20 years minimum |
The 20-year question: EE Bonds only make sense if you’re very confident you won’t need the money for 20 years. The guaranteed doubling (3.5% effective rate) beats most I Bond scenarios — but only if you hold to maturity. Cash an EE Bond after 15 years at 2.70%, and you’ve earned significantly less than I Bonds would have offered.
Which to Choose?
| If You… | Choose |
|---|---|
| Want inflation protection | I Bonds |
| Plan to hold 20+ years | EE Bonds (guaranteed double) |
| Want predictable growth | EE Bonds |
| Concerned about rising inflation | I Bonds |
| Need flexibility | I Bonds |
For most people, I Bonds are the better choice because of their flexibility and inflation protection. EE Bonds are best for specific goals 20+ years away, like a newborn’s college fund.
Purchase Limits
Annual purchase limits restrict how much you can invest in savings bonds, but there are legitimate ways to maximize your holdings:
| Bond Type | Per Person/Year | Via Tax Refund |
|---|---|---|
| I Bonds | $10,000 electronic | +$5,000 paper |
| EE Bonds | $10,000 electronic | N/A |
Maximizing Purchases
A married couple can invest significantly more than the headline $10,000 limit suggests:
| Strategy | Amount |
|---|---|
| Individual I Bonds | $10,000 |
| Spouse I Bonds | $10,000 |
| Tax refund paper I Bonds | $5,000 |
| Trust or business entity | Additional $10,000 |
| Gift I Bonds (buy now, deliver later) | $10,000 |
The gift box strategy: You can buy I Bonds as gifts that sit in your TreasuryDirect “gift box” until you deliver them. This lets you accumulate bonds beyond annual limits, though you can only deliver $10,000 per recipient per year.
Savings Bonds vs Other Safe Investments
How do savings bonds compare to other low-risk options? Here’s a quick comparison:
| Investment | Current Yield | Liquidity | Tax Treatment |
|---|---|---|---|
| I Bonds | ~4.28% | 12-month lock, then 3-mo penalty | Federal only, education exclusion |
| EE Bonds | 2.70% (3.5% at 20 yr) | 12-month lock, then 3-mo penalty | Federal only, education exclusion |
| High-Yield Savings | 4.5-5.0% | Fully liquid | Federal + state |
| 1-Year CD | 4.5-5.0% | Penalty for early withdrawal | Federal + state |
| Treasury Bills | 4.5-5.0% | Sell anytime (market price) | Federal only |
For more comparisons, see HYSA vs Treasury Bills and CDs vs Treasury Bills.
Related: I Bonds Explained | I Bond Rules and Limits | I Bonds vs Treasury Bonds | Best CD Rates | High-Yield Savings Accounts
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