How Series EE bonds build value
A Series EE bond's worth depends on how long you have held it and what the Treasury paid when you bought it. The bond does not pay interest in the traditional sense — instead, it increases in value automatically each month. The Treasury adds the accrued interest directly to the bond's value, so you do not receive a check or deposit; the bond itself becomes worth more.
The value grows based on a fixed rate set at purchase, plus a variable rate that changes every six months. The fixed rate is locked in for the life of the bond and never changes. The variable rate adjusts on May 1 and November 1 each year, based on the 6-month Treasury bill rate. Together, these rates determine how much your bond grows each month.
Key Takeaways
- Series EE bonds increase in value each month through accrued interest, not through separate payments, and you can see the current value on TreasuryDirect.
- The interest rate on your bond consists of a fixed rate (set when you bought it) plus a variable rate (adjusted twice yearly), and both rates are locked in for the bond's life.
- A Series EE bond purchased today will reach face value (double the purchase price) in approximately 20 years if rates remain stable, though this is not may provide.
- You can check your bond's exact current worth by logging into your TreasuryDirect account or using the Savings Bond Calculator on the Treasury website.
- The value you see is what you would receive if you cashed the bond today, minus a three-month interest penalty if you cash it before five years have passed.
Finding your bond's current value
The fastest way to find out what your Series EE bond is worth right now is to log into TreasuryDirect at treasurydirect.gov. If you own the bond through TreasuryDirect (the electronic version), your account shows the current value of every bond you hold, updated daily. The value displayed is what you would receive if you cashed it today.
If you own a paper Series EE bond, use the Savings Bond Calculator on the Treasury website. You will need the bond's series, denomination (the amount you paid), issue date, and the month and year you want to check the value for. The calculator shows you what that bond was worth in any month since you bought it.
The difference between purchase price and face value
Series EE bonds are sold at a discount. You pay half the face value upfront — so a $100 face value bond costs $50 to buy. The bond's goal is to reach its face value (double what you paid) over time through accrued interest. However, reaching face value is not may provide, and the timeline depends entirely on the interest rates attached to your specific bond.
A bond purchased today with current interest rates will take roughly 20 years to reach face value, though this estimate changes as the variable rate adjusts. A bond purchased years ago when rates were higher may have already exceeded face value. A bond purchased when rates were very low may take longer than 20 years. You can only know for certain by checking your bond's actual value in TreasuryDirect or the Savings Bond Calculator.
What happens to your bond after 30 years
Series EE bonds stop earning interest after 30 years from the issue date. At that point, the value you see is final — it will not grow any further. If you have not cashed the bond by then, the value it reached at year 30 is what it will always be worth.
You can still hold the bond after 30 years, but there is no financial reason to do so. If you want to keep the money invested, you would need to move it elsewhere. Many people cash their bonds at or near the 30-year mark to avoid letting them sit idle.
The penalty for cashing early
If you cash a Series EE bond before it has been held for five years, you lose the last three months of interest. This means the value you see in TreasuryDirect is reduced by three months' worth of accrued interest. After five years, you can cash the bond without any penalty and receive the full displayed value.
This penalty is one reason many people hold Series EE bonds longer than they might otherwise — the loss of three months' growth can be meaningful if the bond has been earning at a decent rate. If you need the money urgently, calculate whether the penalty is worth paying, or consider whether you can wait a few more months to avoid it.
How inflation affects what your bond is really worth
The value shown in TreasuryDirect is the nominal value — the actual dollar amount the bond is worth. However, inflation erodes what those dollars can buy. A Series EE bond earning 2.5% per year while inflation runs at 3% means your purchasing power is actually declining, even though the bond's value is rising in dollar terms.
This is why some savers prefer Series I bonds, which adjust for inflation automatically. Series EE bonds do not adjust for inflation; they earn a fixed plus variable rate regardless of what is happening with prices. When deciding whether a Series EE bond's value is attractive, compare the interest rate to current inflation rates to understand the real return you are getting.
Comparing your bond's value to other savings options
To decide whether your Series EE bond's growth is competitive, compare its interest rate to what you could earn elsewhere. A Series EE bond purchased in 2024 earns a combined rate that you can find on the Treasury website under "Current Rates." Compare that rate to what a high-yield savings account, a CD, or a money market account is offering at your bank.
Series EE bonds have advantages beyond the rate: they are backed by the U.S. government, they are not subject to state or local income tax (only federal), and you can defer federal tax on the interest until you cash the bond. However, if a savings account or CD is offering a higher rate with no strings attached, the math may favor moving your money. The value of your bond is only one part of the decision.
Frequently Asked Questions
Can I see what my paper Series EE bond is worth without going to the bank?
Yes. Use the Savings Bond Calculator on treasurydirect.gov. Enter the bond's series, denomination, and issue date, and the calculator shows the value for any month you choose. You do not need to visit a bank or contact the Treasury directly.
Does the value shown in TreasuryDirect include the three-month penalty?
No. The value displayed is the full amount you would receive if you cashed the bond today, assuming you have held it for at least five years. If you have held it less than five years, subtract three months of interest from that displayed value to see what you would actually receive.
What if my Series EE bond is worth less than I paid for it?
This can happen if you bought the bond when interest rates were very low and rates have not risen enough to push the bond above its purchase price yet. The bond will eventually reach face value (double your purchase price) if you hold it long enough, but there is no may provide it will happen within any specific timeframe.
Can I cash my Series EE bond for more than the displayed value?
No. The value shown in TreasuryDirect or the Savings Bond Calculator is the exact amount you will receive when you cash the bond (minus the three-month penalty if applicable). The Treasury does not offer a higher redemption value.
Does my Series EE bond's value change if I do not check it for years?
Yes. The bond continues to accrue interest and grow in value every month, whether you check on it or not. The value increases automatically. You can check it anytime to see the current amount, but the growth happens regardless of whether you are watching.