A Series EE bond's current value depends on how long you've held it and the interest rate it earned when you bought it

The redemption value of a Series EE bond is not fixed at purchase. You buy it at half its face value—a $100 bond costs $50—but what it's worth today depends on two things: the original issue date and the current composite rate the U.S. Treasury assigns to that bond.

Every Series EE bond earns interest monthly, and that interest compounds semiannually. The rate you locked in when you purchased the bond stays with it for the life of the bond. So a bond bought in 2015 earns the rate from 2015; a bond bought last month earns the current rate. You can find your bond's exact purchase date and rate on your TreasuryDirect account or on the paper certificate itself.

The simplest way to find out what your bond is worth right now is to use the Treasury's Savings Bond Calculator at treasurydirect.gov. You enter the bond series, denomination, and issue date, and it tells you the current redemption value. That value changes every month on the first business day, when the Treasury announces the new composite rate.

Key Takeaways

  • Series EE bonds purchased at $50 grow toward a $100 face value, but the exact current worth depends on the interest rate locked in at purchase and how many months have passed.
  • The Treasury's Savings Bond Calculator at treasurydirect.gov shows your bond's current redemption value when you enter the issue date and denomination.
  • Interest compounds semiannually, so a bond's value increases on May 1 and November 1 each year, not continuously.
  • A Series EE bond reaches its original face value (the $100 for a $50 purchase) after 20 years, but it continues earning interest for up to 30 years total.

How the interest rate affects what your bond is worth

The composite rate is the rate your bond earns, and it's set when you buy the bond. Rates change every six months—on May 1 and November 1—but your bond keeps earning the rate from the month you purchased it. A bond bought in March 2020 earns a different rate than one bought in March 2024, even though they're the same series and denomination.

The composite rate is made up of two parts: a fixed rate (set by the Treasury and never changes for your bond) and a variable rate (adjusted every six months based on Treasury security rates). The variable portion can go up or down, but the fixed portion stays locked in forever. This is why older bonds sometimes earn more than newer ones—they may have locked in a higher fixed rate years ago.

You can see historical composite rates on the Treasury website, which helps explain why a 2010 Series EE bond might be worth significantly more than a 2023 one of the same denomination. The 2010 bond had a higher fixed rate built in from the start.

When your bond reaches face value and what happens after

Series EE bonds are may provide to reach their face value in 20 years. If you bought a $50 bond, it will be worth at least $100 after 20 years, even if interest rates were very low when you purchased it. This may provide is unique to Series EE bonds and is one reason people hold them long-term.

After 20 years, your bond doesn't stop earning interest. It continues to earn the same composite rate for another 10 years, up to 30 years total. So a bond purchased in 2004 is still earning interest in 2034. The value keeps growing each May 1 and November 1 when interest compounds.

Once a bond reaches 30 years old, it stops earning interest and is considered mature. At that point, you should cash it in, because holding it longer gains you nothing. The Treasury will not automatically cash it for you.

How to check your bond's value without the calculator

If you own paper Series EE bonds, the certificate itself shows the issue date and denomination, but not the current value—that changes monthly. The only way to know the exact current worth is to use the Savings Bond Calculator or to log into your TreasuryDirect account if the bonds are registered there.

If you bought bonds through TreasuryDirect (the online system), you can see their current value by logging in and viewing your portfolio. The system updates values on the first business day of each month. Paper bonds don't update automatically anywhere; you have to calculate them yourself using the Treasury's tool.

Some banks and credit unions offer bond value lookups, but these are usually estimates based on the last known rate. The Treasury's calculator is the official source and is always accurate.

Why your bond's value matters when you cash it in

You can redeem a Series EE bond anytime after one year of ownership, but if you cash it in before five years have passed, you lose the last three months of interest as a penalty. So a bond held for two years will be worth less than its calculated value because the Treasury deducts three months of interest at redemption.

After five years, there's no penalty—you get the full calculated value. This is why many people hold Series EE bonds for at least five years, even if they don't plan to keep them for the full 20 or 30 years.

When you redeem a bond, the Treasury pays you the redemption value, not the face value. If your $50 bond is currently worth $87, you receive $87. The difference between what you paid ($50) and what you receive ($87) is taxable income in the year you cash it in, unless you use the bond for education expenses under specific conditions.

The difference between what you paid and what it's worth now

Your Series EE bond's gain is the difference between your purchase price and its current redemption value. If you paid $50 and it's now worth $72, your gain is $22. This gain is subject to federal income tax when you redeem the bond, though you can defer reporting it until the year you cash it in.

State and local taxes do not apply to Series EE bonds, which is one tax advantage they offer. You only owe federal tax on the interest earned, not on the original $50 you invested.

If you've held the bond for many years and it's now worth significantly more than you paid, the tax bill in the year you redeem it could be substantial. Some people redeem bonds over multiple years to spread the taxable gain across different tax years and potentially stay in a lower tax bracket.

What happens if you never cash your bond in

If you hold a Series EE bond past its 30-year maturity date without cashing it in, it stops earning interest but remains valid. You can still redeem it at any time for its final value (the value it reached at year 30). The Treasury will not force you to cash it, and it will not expire.

However, there's no financial reason to hold it past 30 years. The bond is no longer growing, and you're just delaying when you'll owe taxes on the interest. Most financial advisors recommend cashing in mature bonds promptly.

If a Series EE bond is lost or destroyed, you can request a replacement from the Treasury by providing proof of ownership and the bond's details. The replacement will have the same value as the original.

Frequently Asked Questions

How do I know what my Series EE bond is worth right now?

Use the Savings Bond Calculator at treasurydirect.gov. Enter the bond series (EE), denomination ($50, $100, etc.), and issue date. The calculator shows the current redemption value. If your bonds are in a TreasuryDirect account, you can also log in and view the value there.

Can a Series EE bond be worth less than what I paid for it?

No. Series EE bonds are may provide to reach their face value (double the purchase price) after 20 years. Even if interest rates are very low, the Treasury makes up the difference. You will never lose money on a Series EE bond if you hold it at least 20 years.

What's the penalty for cashing in my bond early?

If you redeem a Series EE bond before five years of ownership, you forfeit the last three months of interest. After five years, there is no penalty. You receive the full calculated redemption value.

Do I have to pay taxes on my Series EE bond when I cash it in?

Yes, the interest earned is subject to federal income tax in the year you redeem the bond. The gain (redemption value minus purchase price) is taxable. State and local taxes do not apply. You can defer reporting the interest until the year you cash it in.

What happens to my bond after 30 years?

After 30 years, your Series EE bond stops earning interest and reaches its final value. It remains valid and can be cashed in anytime, but it will not grow further. The Treasury recommends redeeming mature bonds promptly to avoid holding a non-earning asset.