How to Calculate the Value of a Savings Bond

savings-bond-calculator
If you have ever wondered how savings on your bond are calculated, you will be surprised to know just how simple it is to calculate the value of a savings bond including EE and HH savings bonds. To calculate your investment:

  • Log on to the Treasury Direct website and click on the “Individual” section.
  • Click the “Price your savings bonds,” button then the savings “Savings Bonds Calculator button.”
  • You will see a “Get Started” button, click on it to access the calculator.
  • Key in the required information including the investment’s serial number, series, value, issue date, and, denomination.
  • Once you have entered all the data requested, click on the “Calculate” button. The value of your savings investment for the date you selected will be displayed by the calculator.

How to Calculate Cash Value of EE Savings Bonds

Series EE savings Bonds can be bought directly from the Government at the Treasury Direct website or via payroll savings deductions. The U.S. Treasury provides savings certificates in the form of Series EE investments. You may incur an interest penalty if you redeem the investment during the first five years. A number of tools are provided by the Treasury Direct, to help calculate the money value of series EE savings investments.

For One or Only a Few Series EE Investments

  • Access the Treasury Direct website and go to the calculator.
  • Click the for “Individuals” box highlighted in green.
  • Select ‘Tools’ on the blue menu at the top.
  • The first choice on the “Tools” page is the “Savings Bond Calculator”.
  • Click the “Get Started” button on the calculator page.
  • Enter the required information such as the issue date of your Series EE bond, the denomination, and serial number.
  • Click “Calculate” to get the current cash value of the bond.

If You Have a Larger Number of Bonds

  • Go to the “Tools page” of Treasury Direct and select the “Savings Bond Wizard”.
  • Download the bond application and install it on your computer.
  • The software will start up automatically once it is downloaded.
  • Look for the “Add a Bond” section of the software and key in details about your Series EE bonds.
  • The software window has data entry button at the top where you can see a complete list of all entered bonds. To update your EE bond values, select the “”Redemption Value”” button.

Information about your EE and HH savings bonds is automatically saved by the calculator. This information is accessible for you to download at any time. The data can also be used in the investment bond software. If you trade bonds regularly, you can set up the savings bond application to add and calculate the new bonds in your listing automatically.

Calculating Interest Payments on Bonds

Interest payments are calculated by Bond issuers in accordance with the conditions of the investment agreement .Bond issuers calculate and pay interest on all bonds with a few exceptions.

Basics of Bond Interest Payments

The sum repaid by the issuer at maturity is the face value of the Investment. Bonds usually pay fixed interest rates. Calculating payments has been made easier because interest is usually paid at six-month intervals. Coupon rate is divided in half and multiplied by the par value. Corporate bonds often have higher returns than other types of bonds because of their risky nature.

Commercial Paper

Commercial paper is money borrowed by foreign governments, corporations, and financial institutions via short-term investments. They mature in 270 days or less.

Zero-Coupon Investments

Zero-coupon investments sell at a discount value. Several corporations and the U.S Treasury sell this type of investment. Once the discount price has been selected, the original price including accumulated interest of the investment equals the bond value at maturity.