Series EE bonds are worth their purchase price plus interest, and the interest compounds semi-annually until the bond matures or you cash it in

A Series EE bond has two values that matter: what you paid for it, and what it will be worth later. You buy a Series EE bond at half its face value — so a $100 bond costs you $50. The bond then earns interest every six months. After 20 years, the U.S. Treasury guarantees that your bond will be worth at least its face value, even if interest rates have been very low. After 30 years, the bond stops earning interest and you should cash it in.

The actual value depends on the interest rate in effect when you bought it. Series EE bonds issued from May 2024 through October 2024 earn 4.30% per year. Bonds issued in different periods earn different rates — the rate is set when you buy and stays the same for the life of the bond. You can look up the rate for any purchase period on the TreasuryDirect website.

Key Takeaways

  • You pay half the face value upfront — a $100 bond costs $50 — and the bond grows through interest compounding every six months.
  • The interest rate is locked in when you purchase and does not change, so a bond bought in 2024 will earn the 2024 rate for 30 years.
  • After 20 years, the Treasury guarantees your bond will be worth at least what you paid for it, even if interest rates were low when you bought.
  • You can cash in a Series EE bond anytime after one year, but you lose the last three months of interest if you cash it before five years.

How the interest compounds and grows your bond's value

Series EE bonds earn interest by compounding semi-annually, meaning the Treasury adds interest to your bond twice a year. The interest itself then earns interest in the next period. This is why a bond bought at $50 can grow to $100 or more even though the interest rate seems modest.

The exact growth depends on the rate your bond carries. A bond earning 4.30% per year will double in roughly 16 to 17 years. A bond earning 1.0% per year will take much longer — closer to 70 years. You can use the Savings Bond Calculator on the TreasuryDirect website to see what a specific bond will be worth at any future date, as long as you know the purchase price, issue date, and current interest rate.

The 20-year may provide and what happens after

The Treasury promises that after 20 years, your Series EE bond will be worth at least its face value — double what you paid. If the interest rate was so low that the bond has not reached face value by year 20, the Treasury adds a one-time adjustment to bring it to exactly face value. This may provide applies to all Series EE bonds, regardless of when they were issued.

After 20 years, the bond continues to earn interest at the same rate for another 10 years, until year 30. At year 30, the bond stops earning interest entirely and you should cash it in. Holding it past 30 years means you are leaving money on the table because no new interest accrues.

When you can cash in and what early withdrawal costs

You can cash a Series EE bond anytime after you have owned it for one year. However, if you cash it before five years have passed, you lose the last three months of interest as a penalty. This means a bond you bought in January 2024 and cashed in January 2025 would lose the interest from October through December 2024.

After five years, you can cash the bond with no penalty and receive the full value it has accrued to that point. There is no tax penalty for early withdrawal — the only cost is the lost interest. You will owe federal income tax on the interest you earned, but not state or local tax if you used the bond for education expenses (and met other conditions).

How interest rates affect the value of bonds you buy today

The interest rate environment when you purchase determines your bond's earning power for its entire 30-year life. Bonds bought during periods of higher rates will grow faster than bonds bought during low-rate periods. The Treasury sets the rate every six months in May and November based on market conditions.

You cannot predict future rates, so you cannot know whether a bond you buy today will be a good deal in hindsight. What you can do is compare the current Series EE rate to other savings options — high-yield savings accounts, certificates of deposit, or Treasury bills — to decide whether a 30-year commitment makes sense for your money right now.

Comparing Series EE value to other Treasury bonds

Series EE bonds differ from Series I bonds, which are also sold by the Treasury. Series I bonds have a variable interest rate that adjusts every six months based on inflation, while Series EE bonds have a fixed rate. If you expect inflation to rise, Series I bonds may grow faster. If you expect inflation to stay low or fall, Series EE bonds with a higher fixed rate may be better.

Series EE bonds also differ from Treasury bills, notes, and bonds sold at auction. Those instruments have different maturity lengths (bills mature in weeks or months, notes in 2 to 10 years, bonds in 20 to 30 years) and you buy them at auction with competitive bidding. Series EE bonds are sold at a set price with a may provide rate, making them simpler but potentially less flexible.

Tracking your bond's current value

If you own Series EE bonds, you can check their current value on the TreasuryDirect website by logging into your account. The site shows each bond's purchase date, purchase price, interest rate, and current value. You can also use the Savings Bond Calculator if you do not have a TreasuryDirect account — you enter the bond series, denomination, issue date, and the month and year you want to know the value for.

Paper Series EE bonds (if you own older ones) can be valued the same way using the calculator. The Treasury stopped issuing paper bonds in 2011, so all new Series EE bonds are electronic and held in a TreasuryDirect account.

Frequently Asked Questions

Will my Series EE bond definitely be worth $100 if I paid $50?

Yes, after 20 years. The Treasury guarantees that your bond will reach face value by year 20, even if interest rates were very low when you bought it. If the compounded interest has not brought it to face value on its own, the Treasury adds a one-time adjustment to make up the difference.

What is the current interest rate for Series EE bonds?

The rate changes every six months in May and November. You can find the current rate and historical rates on the TreasuryDirect website under "Series EE Savings Bonds." Rates vary depending on when you purchase, and your rate stays the same for the life of the bond.

Can I lose money on a Series EE bond?

No. The worst case is that your bond grows very slowly if interest rates are low, but you will never receive less than you paid after the 20-year may provide takes effect. Before 20 years, if you cash in early, you lose three months of interest if you have owned it less than five years, but you still get back at least your original purchase price.

Should I buy Series EE bonds or Series I bonds?

Series EE bonds lock in a fixed rate for 30 years, while Series I bonds adjust every six months based on inflation. If you think inflation will rise, Series I may grow faster. If you want predictability and current rates are attractive, Series EE may suit you better. Compare the current rates for each on TreasuryDirect before deciding.

What happens to my bond after 30 years?

The bond stops earning interest at year 30 and you should cash it in. Holding it longer means you receive no additional growth. You can cash it anytime after one year with no penalty (except the three-month interest loss if cashed before five years).