A $50 savings bond's current value depends on when it was issued and how long you've held it
A $50 savings bond purchased today costs $25 (you buy Series EE bonds at half their face value). That $25 grows with interest over time. The exact amount it is worth right now depends on the issue date and the current interest rate the U.S. Treasury is paying on new bonds.
If you own an older bond, its value is locked in at the rate that was in effect when you bought it. A bond issued in 2010 earns a different rate than one issued in 2024. The Treasury updates rates every six months, on May 1 and November 1. You can look up what your specific bond is worth using the Treasury's Savings Bond Calculator, which requires the series, denomination, issue date, and the month and year you want to check the value for.
Series EE bonds are may provide to double in value within 20 years, no matter what the interest rate is. If you hold a bond for less than 20 years and the interest earned does not add up to doubling, the Treasury makes up the difference. This floor means your $25 bond will be worth at least $50 after 20 years, even in a low-interest environment.
Key Takeaways
- A $50 Series EE bond costs $25 to purchase and grows with interest that compounds semiannually.
- The interest rate your bond earns was set on its issue date and does not change, even if Treasury rates rise later.
- Series EE bonds are may provide to at least double in value within 20 years, regardless of interest rates.
- You can find your bond's exact current value using the Treasury's Savings Bond Calculator with your issue date and series.
- If you cash in a bond before five years have passed, you lose the last three months of interest as a penalty.
How the interest rate is set and locked in
When you buy a Series EE bond, the interest rate is determined by the Treasury on the issue date. That rate stays the same for the entire life of the bond—it does not adjust if market rates go up or down. The Treasury announces new rates twice a year, on May 1 and November 1, and those rates apply to all bonds issued in the following six months.
Interest compounds semiannually, meaning it is calculated and added to your bond every six months. The new interest then earns interest itself in the next period. This compounding is why a bond's value grows faster over time, even though the rate itself never changes.
Because the rate is locked in at purchase, a bond bought when rates are high will always be worth more than one bought when rates are low, assuming both are held for the same length of time. This is why the issue date matters so much when calculating current value.
The 20-year doubling may provide and what it means
The Treasury promises that a Series EE bond will be worth at least double its purchase price after 20 years. If you paid $25 for a bond, it will be worth at least $50 on the 20-year anniversary, even if interest rates have been very low the entire time.
This may provide is a floor, not a ceiling. If the interest rate on your bond is high enough that it naturally doubles in less than 20 years, you get that higher value. The may provide only kicks in if the earned interest falls short. In practice, most bonds issued in recent years have doubled well before the 20-year mark because rates have been higher than the minimum needed to double.
After 20 years, your bond continues to earn interest for up to 30 years total from the issue date. The doubling may provide does not apply to those extra 10 years, but the bond keeps growing. You can hold a Series EE bond for its full 30-year life if you want.
The early redemption penalty and when it matters
If you cash in a Series EE bond before it has been held for five years, you lose the last three months of interest. This is a real cost: if you bought a bond six months ago and need the money now, you will receive only three months of interest, not six.
After five years, there is no penalty. You can cash in the bond anytime and receive the full value it has earned up to that point. This five-year window is why Series EE bonds are not a good choice for money you might need in the next few years. A high-yield savings account or a short-term CD is better for that purpose.
How to find the exact value of a bond you own
The U.S. Treasury maintains a free Savings Bond Calculator on its website at treasurydirect.gov. To use it, you need four pieces of information: the bond series (EE, I, or another type), the denomination ($50 in your case), the issue date, and the month and year you want to know the value for.
Enter those details and the calculator shows you the exact dollar amount your bond is worth on that date. This is the only authoritative source for current bond values. Banks and brokers cannot tell you the value because they do not have access to the Treasury's real-time data.
If you have lost track of your bond's issue date, you may be able to find it on the bond itself if it is a paper bond, or in your TreasuryDirect account if you bought it electronically. Paper bonds issued before 2012 are no longer sold, but they remain valid and can still be cashed in.
Series I bonds versus Series EE bonds for comparison
Series I bonds are a different type of savings bond that works differently from Series EE bonds. I bonds are also purchased at face value (you pay $50 for a $50 bond, not $25), and their interest rate adjusts every six months based on inflation. This makes them useful in high-inflation periods, but they also have a five-year early redemption penalty.
Series EE bonds have a fixed rate that never changes, so they are more predictable. If you want to know exactly how much your bond will be worth in five years, an EE bond tells you that. An I bond's value depends on what inflation does, which you cannot predict.
Both types are backed by the U.S. government and both have the same five-year penalty for early cashing. The choice between them depends on whether you want a may provide fixed return (EE) or inflation protection (I).
Tax treatment and when you owe federal income tax
You do not owe federal income tax on the interest your Series EE bond earns until you cash it in. This is called tax deferral. If you hold a bond for 20 years and then cash it in, you owe tax on all 20 years of interest in the year you redeem it, not spread across the years you held it.
You can choose to report the interest each year instead of waiting until redemption, but most people do not because it means paying tax sooner. The exception is if you use the bond to pay for may have access to education expenses—in that case, you may not owe federal tax on the interest at all, though you will still owe state and local tax in most states.
Series EE bonds are exempt from state and local income tax, which is a small advantage over other savings vehicles. This does not change the federal tax treatment, but it does mean your after-tax return is slightly higher than it would be with a taxable bond.
Frequently Asked Questions
Can I look up the value of a bond I bought 10 years ago?
Yes. Use the Treasury's Savings Bond Calculator with your bond's issue date from 10 years ago. The calculator will show you what it was worth then and what it is worth now. If you do not remember the exact date, the month and year are usually enough.
What happens if I cash in my $50 bond after 15 years?
You receive the full value it has earned, with no penalty. The five-year early redemption penalty only applies if you cash in before five years have passed. After that, you can redeem anytime without losing interest.
Is my old paper $50 savings bond still worth anything?
Yes. Paper Series EE bonds remain valid indefinitely and can be cashed at most banks or through the Treasury. Use the Savings Bond Calculator to find out the current value, then take it to your bank or mail it to the Treasury for redemption.
Why does my bond's value not match what the bank told me?
Banks do not have access to real-time Treasury data and may give you an estimate or outdated information. The only accurate source is the Treasury's Savings Bond Calculator. Use that to confirm the value before you cash in.
If I bought a $50 bond at $25, do I owe tax on that $25 difference right away?
No. The $25 difference between what you paid and the face value is not taxable income. You only owe tax on the interest the bond earns, and only when you redeem it (unless you choose to report interest annually).