How Much Is a $100 Savings Bond Worth After 18 Years?

United States savings bonds are a long-standing method for individuals to invest in government-backed securities. These bonds have been a popular choice for long-term savings, often received as gifts or purchased with specific financial goals in mind. Many bondholders, especially those who received bonds years ago, may wonder about their current worth. Determining the exact value of a savings bond requires specific details about the bond itself, as its growth is influenced by its type, issue date, and how interest accrues over time. This guide aims to clarify how these investments gain value and how to ascertain their current worth.

Understanding Savings Bonds and Their Value

Savings bonds are debt securities issued by the U.S. Department of the Treasury, considered a low-risk investment because they are backed by the full faith and credit of the U.S. government. The two main types available to the public are Series EE bonds and Series I bonds, each with distinct interest accrual methods. Series EE bonds earn a fixed interest rate, which is set at the time of purchase and compounds semi-annually. Series EE bonds issued today are guaranteed to double in value over 20 years.

Series I bonds, conversely, protect against inflation by combining a fixed rate with a variable inflation rate. This variable rate adjusts every six months based on changes in the Consumer Price Index (CPI-U). Both Series EE and Series I bonds begin earning interest from their issue date. They continue to accrue interest for a total of 30 years from their issue date. After this 30-year period, interest stops accumulating.

Locating Your Bond’s Information

To determine the value of a savings bond, specific information from the bond is necessary. For physical paper savings bonds, you will need to locate the series and the full issue date (month, day, and year). The face value or denomination of the bond is also printed on the certificate.

For electronic savings bonds held within a TreasuryDirect account, after logging in, you can navigate to your current holdings. This section will display details for each bond, including its series, issue date, purchase price, and a confirmation number. These details are a prerequisite for using any official bond value calculator.

Checking Your Bond’s Current Value

Once you have gathered the necessary details, the most accurate way to check a savings bond’s current value is through the official TreasuryDirect website. This platform provides a dedicated Savings Bond Calculator. To use the calculator for a paper bond, input the bond’s series, its denomination, and the exact issue date.

For electronic bonds, log into your TreasuryDirect account, where the system automatically displays the current value of your holdings. The online calculator provides information including the bond’s current redemption value, the total interest earned to date, the next scheduled interest accrual date, and its final maturity date. This tool applies the correct interest rates and compounding periods based on the bond’s specific characteristics.

Understanding Maturity and Redemption

A common inquiry pertains to a bond’s value after a specific period, such as 18 years. Both Series EE and Series I bonds continue to earn interest for a full 30 years from their issue date. A bond issued 18 years ago still has 12 years remaining to accrue additional interest before reaching its final maturity. Holding a bond until its final maturity date can significantly increase its total value.

When you are ready to redeem a savings bond, the process varies slightly depending on whether it is a paper or electronic bond. Electronic bonds can be redeemed directly through your TreasuryDirect account, with funds deposited into your linked bank account within two business days. Paper bonds can be cashed at a local financial institution, though it is advisable to call ahead as policies vary, or they can be mailed to the Treasury for redemption.

Interest earned on savings bonds is subject to federal income tax, but is exempt from state and local income taxes. Bondholders have the option to defer reporting this interest for tax purposes until the bond is redeemed or reaches final maturity, whichever occurs first. Interest may be excluded from federal taxation if bond proceeds are used for qualified higher education expenses, subject to income limitations and other conditions.