Patriot Bonds start at $25 and grow in value over time, but the amount they're worth depends on when you bought them and when you cash them in

A Patriot Bond is a Series EE savings bond issued by the U.S. Treasury. You buy it at half its face value — so a $100 bond costs you $50. The bond then earns interest for up to 30 years. The longer you hold it, the more it's worth, because the Treasury adds interest automatically each month.

The exact value of your bond at any point depends on three things: the purchase price, how long you've owned it, and the current interest rate the Treasury is paying. You can look up the current value of any bond you own using the Treasury's Savings Bond Calculator on TreasuryDirect.gov.

Key Takeaways

  • Patriot Bonds cost half their face value when you buy them — a $50 bond costs $25 — and gain value through interest over time.
  • The Treasury sets the interest rate for Patriot Bonds twice a year (May and November), and rates vary widely depending on inflation and market conditions.
  • You can cash in a Patriot Bond after one year, but if you cash it in before five years, you lose the last three months of interest as a penalty.
  • The Treasury's Savings Bond Calculator on TreasuryDirect.gov shows you the exact current value of any bond you own.
  • Patriot Bonds reach their face value (double what you paid) after roughly 20 years at average interest rates, though this timeline varies with each rate period.

How the purchase price works

You always buy a Patriot Bond at a 50 percent discount. The smallest bond you can buy is a $25 bond, which costs you $12.50. The largest is a $10,000 bond, which costs $5,000. You can buy them in any denomination in between.

This discount is built into the bond structure — it's not a sale or a special offer. The bond's value on the day you buy it is already half its face value. From that moment forward, the Treasury adds interest each month, and the bond's value climbs toward its face value and beyond.

Interest rates and how they change

The Treasury sets a new interest rate for Patriot Bonds on May 1 and November 1 each year. The rate you receive depends on which rate period your bond falls into. If you buy a bond in June, it earns the rate set in May. If you buy one in December, it earns the rate set in November.

The interest rate varies significantly from one period to the next. In recent years, rates have ranged from as low as 0.10 percent to as high as 5.15 percent, depending on inflation and economic conditions. The Treasury publishes all current and historical rates on TreasuryDirect.gov, so you can see exactly what rate applies to any bond you own.

Your bond earns the same rate for the entire first six-month period after purchase, then the rate may change again. Over a 30-year holding period, your bond will experience many different rate periods, which is why the final value is hard to predict without a calculator.

When you can cash in a bond and what happens to its value

You can cash in a Patriot Bond after holding it for one year. However, if you cash it in before five years have passed, the Treasury subtracts the last three months of interest as a penalty. This means you lose money if you need the cash too soon.

After five years, you can cash in the bond without any penalty, and you receive its full current value. The longer you hold the bond after that point, the more interest it continues to earn, so the value keeps climbing. Most people hold Patriot Bonds for at least five years to avoid the early-withdrawal penalty.

You cash in a Patriot Bond through TreasuryDirect.gov or through a bank or broker. The Treasury deposits the money into your account within a few business days. The value you receive is whatever the bond is worth on the day you request the redemption.

How long it takes to reach face value

Because you buy a Patriot Bond at half its face value, it takes time for interest to make up that gap. At an average interest rate of around 2 to 3 percent, a bond typically reaches its face value in roughly 20 years. However, this timeline is not may provide and depends entirely on the interest rates the Treasury sets during that period.

If interest rates are higher than average, your bond reaches face value faster. If rates are lower, it takes longer. During periods of very low interest rates, some bonds may take 25 or 30 years to reach face value. You can use the Savings Bond Calculator to see when your specific bond is projected to reach face value based on current rates.

Using the Treasury's Savings Bond Calculator

The fastest way to find out what your Patriot Bond is worth right now is to use the Savings Bond Calculator at TreasuryDirect.gov. You enter the bond's series, denomination, and the month and year you bought it, and the calculator shows you its current value.

If you own bonds through TreasuryDirect, you can also log into your account and see the value of each bond listed there. The values update monthly, so you can track how your bonds are growing over time. This is the most accurate way to know what your bonds are worth at any moment.

Frequently Asked Questions

Can a Patriot Bond be worth more than its face value?

Yes. Once a bond reaches its face value, it continues to earn interest, so it keeps growing. A $100 Patriot Bond can be worth $110, $120, or more, depending on how long you hold it and the interest rates it earns. The bond can earn interest for up to 30 years.

What happens if I cash in my bond before one year?

You cannot cash in a Patriot Bond before one year has passed. The Treasury will not allow it. You must hold the bond for at least one year before you can redeem it for cash.

Do I pay taxes on the interest my Patriot Bond earns?

Yes. The interest is subject to federal income tax. You can choose to pay taxes each year as the interest accrues, or you can wait and pay all the taxes when you cash in the bond. State and local taxes do not apply to Patriot Bonds.

Is the value of my Patriot Bond may provide?

The Treasury guarantees that your bond will reach at least its face value within 20 years. If it has not reached face value by then, the Treasury adds a one-time adjustment to make up the difference. This may provide protects you if interest rates stay very low for an extended period.

Can I check my bond's value without logging into TreasuryDirect?

Yes. The Savings Bond Calculator on TreasuryDirect.gov works without logging in. You just need to know the bond's series, denomination, and purchase date. If you own bonds through a bank or broker, contact them directly for the current value.