A $100 savings bond is not worth $100 when you cash it

A $100 savings bond costs $50 to buy but does not pay out $100 immediately. The bond accrues interest over time, and the amount you receive when you cash it depends on how long you have held it, which series it is (Series EE or Series I), and when you bought it. A Series EE bond purchased today will reach its face value of $100 in roughly 20 years if interest rates stay constant. A Series I bond's value changes every six months based on inflation.

The exact payout depends on the current interest rate environment and how long the bond has been sitting. You can look up the current value of any bond you own through the U.S. Department of the Treasury's Savings Bond Calculator at treasurydirect.gov, which asks for the series, denomination, and issue date and returns the exact cash-out amount.

Key Takeaways

  • A $100 Series EE bond costs $50 to purchase and grows toward $100 over approximately 20 years at current rates.
  • Series I bonds adjust in value every six months based on inflation rates, so their growth rate is not fixed.
  • You can find the exact current value of any bond using the Treasury's Savings Bond Calculator at treasurydirect.gov.
  • Cashing a bond before five years have passed costs you three months of interest as a penalty.
  • After 30 years, a savings bond stops earning interest, so holding it longer than that does not increase its value.

How Series EE bonds grow in value

Series EE bonds are sold at a 50 percent discount, meaning you pay $50 for a $100 bond. The Treasury guarantees that the bond will reach its face value ($100) in 20 years. If interest rates are higher than needed to hit that 20-year target, the bond earns more and reaches $100 sooner. If rates are lower, it still hits $100 at the 20-year mark because of the may provide.

The interest rate on Series EE bonds is set twice a year (May and November) and applies to all bonds issued in that month. A bond issued in May 2024 earns a different rate than one issued in November 2024. Once your bond is issued, its rate is locked in for the life of the bond. You can check current rates on treasurydirect.gov before you buy.

After 20 years, a Series EE bond continues to earn interest for another 10 years (up to 30 years total). After 30 years, it stops earning interest entirely, so there is no benefit to holding it longer.

How Series I bonds grow in value

Series I bonds work differently because their interest rate changes. The rate is made up of two parts: a fixed rate (set when you buy) and an inflation rate (adjusted every six months in May and November). The combined rate is what you earn. If inflation drops, your rate drops with it. If inflation rises, your rate rises.

A $100 Series I bond also costs $50 to buy. The value grows month by month as interest accrues, and you can see the exact amount in the Treasury calculator. Because the rate adjusts, you cannot predict the exact value years in the future the way you can with a Series EE bond.

Series I bonds have a 30-year life like Series EE bonds, but they also have a penalty for early withdrawal: if you cash one before five years have passed, you lose the last three months of interest. After five years, you can cash it with no penalty.

When you can cash a bond and what you get

You can cash a savings bond at most banks, credit unions, and through the Treasury's TreasuryDirect website. If you cash it at a financial institution, bring the bond certificate and a photo ID. If you use TreasuryDirect, the money goes directly to your linked bank account.

The amount you receive is the current value shown in the Treasury calculator on the day you cash it. If you cash a Series I bond before five years have passed, the Treasury subtracts three months of interest from that amount. For example, if a bond is worth $52 but you cash it at year three, you lose three months of accrued interest and receive less than $52.

Series EE bonds have no early-withdrawal penalty, so you can cash them at any time and receive the full current value. However, you do lose the interest that would have accrued if you had held it longer.

How to find the exact value of a bond you own

Go to treasurydirect.gov and select "Savings Bond Calculator" from the menu. You will need to enter the series (EE or I), the denomination ($50, $100, $200, etc.), and the issue date (the month and year you bought it). The calculator returns the current value and the interest earned to date.

If you bought the bond through a bank or employer, you may have a paper certificate. The issue date is printed on the certificate. If you bought it through TreasuryDirect, you can log into your account and see all your bonds listed with their current values.

The calculator updates daily as interest accrues, so the value you see today will be slightly higher tomorrow. The difference is small but real—a bond earning 4 percent per year earns roughly 0.01 percent per day.

What affects how much a $100 bond is worth

The purchase price is always $50 for a $100 bond, regardless of interest rates. What changes is how fast it grows toward (or past) that $100 face value. Higher interest rates mean faster growth. Lower rates mean slower growth. For Series EE bonds, the Treasury's 20-year may provide ensures you always reach $100, but the speed varies.

For Series I bonds, inflation is the main driver. When inflation is high, your rate is high, and the bond grows faster. When inflation is low, the rate is low, and growth slows. This is why Series I bonds are often bought during periods of rising prices—they protect you by raising the interest rate automatically.

The age of the bond also matters. A bond that is 15 years old is worth more than an identical bond that is 5 years old, all else equal. A bond that is 30 years old has stopped earning interest and will not gain any more value no matter how long you hold it.

Frequently Asked Questions

Can a $100 savings bond be worth more than $100?

Yes. Series EE bonds can grow past their $100 face value if interest rates are high enough. A bond issued 25 years ago might be worth $120 or more today. Series I bonds can also exceed their face value depending on inflation rates and how long you have held them.

What is the difference between a $100 bond and a $50 bond?

A $100 bond costs $50 to buy and has a $100 face value. A $50 bond costs $25 to buy and has a $50 face value. The growth rate is the same—both earn the same interest rate for the same series and issue date. The only difference is the dollar amount you invest upfront and the maximum value the bond can reach.

How long does it take for a $100 savings bond to be worth $100?

For a Series EE bond, roughly 20 years at current rates, though it can be faster if rates are higher. For a Series I bond, the timeline varies because the rate adjusts every six months. You can use the Treasury calculator to see exactly how long based on the current rate.

Do I lose money if I cash a savings bond early?

Not with a Series EE bond—you receive the full current value whenever you cash it. With a Series I bond cashed before five years, you lose three months of interest, which can reduce the payout by a small amount. After five years, Series I bonds have no penalty.

Where do I check the value of my savings bond?

Use the Savings Bond Calculator at treasurydirect.gov. Enter the series, denomination, and issue date, and it shows the current value. If you own the bond through TreasuryDirect, you can also log into your account to see all your bonds and their values listed.