You can use the savings bond calculator on the Treasury Direct website (www.treasurydirect.gov/BC/SBCPrice) to calculate the value of your bond. Using the current date to work from, if you bought a series EE saving bond worth $50 in May 1996, then its current value is $42.22.
Many misunderstand that number and think that they have lost money on their bond. This is not possible and often the misunderstanding is made due to the initial cost that is involved with setting up a savings bond. A series EE savings bond is initially bought for half of the face amount listed on the bond. In your example this means that your $50 savings bond was purchased for $25. The interest that is then earned and accrued on the savings bond is growing in value towards the denomination value of the bond. Therefore, the $42.22 value is the original investment of $25 plus its accrued interest of $17.22 at a rate of 1.67 per cent.
Saving bonds have a guaranteed value time frame. Any that were issued from May 1995 until May 2003 are guaranteed to double in value or reach the denomination value in no more than seventeen years. So, although your $25 have not yet increased in enough value ($42.22) to reach its denomination value of 50 dollars, it will within the next two years. If the savings bond has not earned enough interest by the time it is guaranteed to double, it will be credited with a one-time extra interest to ensure that the bond is brought up to value. If a savings bond is redeemed before reaching the guaranteed value time frame, the amount received from cashing in the bond will not be as much as the denomination listed on the bond.
Many misunderstand that number and think that they have lost money on their bond. This is not possible and often the misunderstanding is made due to the initial cost that is involved with setting up a savings bond. A series EE savings bond is initially bought for half of the face amount listed on the bond. In your example this means that your $50 savings bond was purchased for $25. The interest that is then earned and accrued on the savings bond is growing in value towards the denomination value of the bond. Therefore, the $42.22 value is the original investment of $25 plus its accrued interest of $17.22 at a rate of 1.67 per cent.
Saving bonds have a guaranteed value time frame. Any that were issued from May 1995 until May 2003 are guaranteed to double in value or reach the denomination value in no more than seventeen years. So, although your $25 have not yet increased in enough value ($42.22) to reach its denomination value of 50 dollars, it will within the next two years. If the savings bond has not earned enough interest by the time it is guaranteed to double, it will be credited with a one-time extra interest to ensure that the bond is brought up to value. If a savings bond is redeemed before reaching the guaranteed value time frame, the amount received from cashing in the bond will not be as much as the denomination listed on the bond.
