Explain it like I’m 5
A savings bond is like lending your money to the US government. The government keeps it safe and pays you extra for borrowing it. It’s one of the safest places for money there is — but you can’t take it back in the first year.
There are two kinds. An EE bond is the patient one: it promises your money will at least double in 20 years. Put in $50, and in 20 years it’s worth at least $100. An I bond is the one that fights rising prices: when things in stores get more expensive (that’s inflation), the I bond pays more interest, so your money keeps up.
Every six months, the government adds the interest to your bond, and the next interest is figured on the new, bigger amount. This calculator replays all those six-month steps using the real rates the government published, so you can see what your bond is worth right now.
Words you’ll see, in plain English
- US savings bond
- A very safe way to lend money to the US government. You can’t sell it to anyone else — you just cash it in with the government.
- I bond
- A savings bond whose interest goes up when prices go up, so your money keeps up with inflation.
- EE bond
- A savings bond with a fixed interest rate that the government promises will at least double in 20 years.
- Fixed rate
- An interest rate that never changes for as long as you own the investment.
- Composite rate
- An I bond’s total interest rate: its fixed part plus its inflation part, combined.
- Inflation
- Prices slowly going up over time, so the same dollar buys a little less each year. A candy bar that cost $1 might cost $1.03 next year.
- Early withdrawal penalty
- A fee for taking your money out before you promised to.
- Maturity
- The day an investment “finishes” and you get your money back — like the end date on a CD or a bond.
More money words explained simply in our glossary.
How to use the savings bond calculator
- Choose I or EE. It’s printed on paper bonds (“Series I” or “Series EE”) and shown in your TreasuryDirect account.
- Enter the issue month and year. On a paper bond it’s the “issue date” in the top-right corner. Bonds always count from the first day of the issue month.
- Enter what you paid. Electronic bonds sell for their face value. Paper EE bonds sold for half the printed amount — a $100 paper EE bond cost $50.
- Pick the date to value it at — today, or a future date to see what it could grow to.
Current savings bond rates
| Bond | Rate for bonds bought now | How it works |
|---|---|---|
| I bond | 5.51% | 1.40% fixed for life + inflation part (2.04% for 6 months), changes every 6 months |
| EE bond | 2.90% | Fixed for 20 years, guaranteed to double in 20 years |
Rates are set every May 1 and November 1. Figures shown are the official TreasuryDirect rates as of Nov 2026.
How I bond interest works, step by step
- The fixed rate is locked in the day you buy and never changes.
- The inflation rate is reset every six months based on consumer prices (CPI-U).
- They’re combined into the composite rate: fixed + (2 × inflation) + (fixed × inflation). It can never go below 0%, so your bond never loses value.
- Every six months, interest for the period is added, and the next six months earn interest on the new, larger value.
Composite rate = fixed + 2 × semiannual inflation + fixed × semiannual inflation
Example: a $10,000.00 I bond bought in January 2022 earned 7.12% for its first six months and 9.62% for the next six, when inflation was high. By Nov 2026it’s worth about $12,398.37 — $2,398.37 of interest.
Recent I bond rates
| Bought from | Fixed rate (for life) | Inflation rate (6 months) | Composite rate |
|---|---|---|---|
| Nov 2026 | 1.40% | 2.04% | 5.51% |
| May 2026 | 0.90% | 1.67% | 4.26% |
| Nov 2025 | 0.90% | 1.56% | 4.03% |
| May 2025 | 1.10% | 1.43% | 3.98% |
| Nov 2024 | 1.20% | 0.95% | 3.11% |
| May 2024 | 1.30% | 1.48% | 4.28% |
| Nov 2023 | 1.30% | 1.97% | 5.27% |
| May 2023 | 0.90% | 1.69% | 4.30% |
How EE bonds work, step by step
- You get a fixed rate — 2.90% for bonds bought now — for the first 20 years.
- Interest is added every six months, just like an I bond.
- At 20 years, Treasury checks whether the bond has doubled. A $1,000.00 EE bond at 2.90% would grow to about $1,778.62 on its own — so Treasury tops it up to $2,000.00.
- After 20 years it keeps earning until 30 years, at a rate Treasury may adjust.
The doubling guarantee is why EE bonds can make sense if you’re sure you’ll hold for 20 years — and much less sense if you might cash out earlier.
Savings bond rules worth knowing
- Buy only from TreasuryDirect.gov. Each person can buy up to $10,000 of electronic I bonds and $10,000 of electronic EE bonds per calendar year.
- 12-month lock: you can’t cash a bond in its first year.
- 5-year penalty: cash before 5 years and you lose the last 3 months of interest.
- 30-year life: after 30 years the bond stops earning — cash it in.
- Taxes: federal income tax only (no state or local tax), and you can wait until you cash the bond to report the interest.
Common mistakes
- Using the face value of a paper EE bond as the price. They sold for half the printed amount.
- Forgetting old bonds in a drawer. Bonds that are past 30 years old have stopped earning; cash them in.
- Cashing right before a rate change or the 5-year mark. A few weeks’ wait can avoid the 3-month penalty.
Frequently asked questions
How much is my savings bond worth?
Enter the bond type (I or EE), the month and year it was issued (printed on paper bonds, or shown in TreasuryDirect), and what you paid. The calculator applies the official Treasury rate for every 6-month period since then. For paper EE bonds, enter half the face value printed on the bond, because that’s what they sold for.
What is the current I bond rate?
I bonds issued from Nov 2026 through six months later earn a composite rate of 5.51%: a 1.40% fixed rate that lasts for the life of the bond, plus a 2.04% semiannual inflation rate that changes every six months.
When can I cash in a savings bond?
After 12 months. If you cash it before it’s 5 years old, you give up the last 3 months of interest. After 5 years there’s no penalty. I bonds and EE bonds keep earning interest for 30 years, then stop — so there’s no reason to hold one longer than that.
Do EE bonds really double?
Yes — for EE bonds issued since May 2005, Treasury guarantees the bond will be worth at least twice what you paid after 20 years, adding a one-time top-up if the fixed rate alone doesn’t get it there. That guarantee works out to about 3.5% a year if you hold for exactly 20 years.
Are savings bonds taxed?
Interest is subject to federal income tax but exempt from state and local income tax. You can choose to report interest each year or wait until you cash the bond (or it reaches 30 years). If you use the money for qualified higher-education expenses and meet income limits, the interest may be tax-free.
Why can’t I value my older paper EE bond here?
EE bonds issued before May 2005 earn variable or older rate schedules that are much more complicated. For those (and for Series E and HH bonds), use the official Savings Bond Calculator on TreasuryDirect.gov.
These results are estimates for education only, based on the assumptions you enter. They are not financial, investment or tax advice. Real returns, rates and taxes vary. See our methodology anddisclaimer.