How Much Is a $50 Savings Bond Worth After 30 Years?

U.S. savings bonds are a type of low-risk investment product issued by the U.S. Department of the Treasury. These debt securities allow individual investors to lend money to the federal government. The primary appeal of savings bonds is their safety, as they are backed by the full faith and credit of the U.S. government. They are designed to appreciate in value over time by accruing interest.

How Savings Bonds Grow in Value

Savings bonds accumulate value through the accrual of interest, which is added to the bond’s principal. This process is known as compounding, where interest is earned not only on the initial investment but also on the previously accumulated interest. Both Series EE and Series I bonds earn interest monthly, and this interest is compounded semiannually, meaning every six months the bond’s interest rate is applied to a new, larger principal amount.

Series EE bonds are designed to earn a fixed rate of interest, which is set at the time of purchase. For bonds issued today, the Treasury guarantees that the bond will at least double in value over a 20-year period. If the fixed interest rate alone does not achieve this doubling within 20 years, the Treasury makes a one-time adjustment to ensure the bond’s value reaches double the purchase price.

Series I bonds, conversely, feature a composite interest rate that combines a fixed rate and a variable inflation rate. The fixed rate is established at the time of purchase and remains constant for the life of the bond. The variable inflation rate adjusts every six months based on changes in the Consumer Price Index for all Urban Consumers (CPI-U), which helps protect the bond’s purchasing power against inflation.

Determining the Current Value of Your Bond

To ascertain the current value of your savings bond, the TreasuryDirect website offers a “TreasuryDirect Bond Value Calculator.” This online tool is designed specifically for paper savings bonds, including Series EE, Series E, and Series I bonds. For electronic bonds, you must log into your TreasuryDirect account to view their current value.

Before utilizing the calculator, gather specific details about your bond. You will need to know the bond’s series (e.g., EE, I), its denomination (e.g., $50, $100), and its exact issue date.

Once you have this information, navigate to the Savings Bond Calculator on the TreasuryDirect website. Input the bond’s series, denomination, and issue date into the corresponding fields. Click the “Calculate” button to display the bond’s current value. The calculator can also provide values for past dates, going back to January 1996, and future dates within the bond’s current six-month interest period.

Factors Affecting a $50 Bond’s Value Over 30 Years

The value of a $50 savings bond after 30 years depends on its issue date and whether it is a Series EE or Series I bond. The interest rates applicable to the bond are determined by its issue date, directly influencing its growth over three decades. Older bonds often had different interest rate structures compared to those issued more recently.

For Series EE bonds, those issued since May 2005 earn a fixed rate of interest for their entire 30-year life. While they are guaranteed to double in value in 20 years, their final value at 30 years will exceed this amount due to continued interest accrual. For example, a $50 Series EE bond purchased with a fixed rate would continue to compound interest for an additional ten years beyond its doubling guarantee, resulting in a higher ultimate redemption value.

Series I bonds have a variable component tied to inflation, meaning their growth over 30 years is less predictable. The composite rate, which includes a fixed rate and a variable inflation rate, adjusts every six months. Therefore, the value of a $50 Series I bond after 30 years would reflect the cumulative effect of these fluctuating rates over its entire life, which can lead to substantial differences in value depending on the economic environment during its holding period. Regardless of the series, all savings bonds cease earning interest after 30 years from their issue date.

Redeeming Your Matured Savings Bond

Redemption varies depending on whether your savings bond is electronic or paper. For electronic savings bonds held in a TreasuryDirect account, redemption is typically handled online. You can initiate the redemption request through your account, and the funds are usually deposited directly into your linked bank account.

Paper savings bonds require a different approach. To redeem a paper bond, you generally need to complete FS Form 1522, “Application for Redemption of United States Savings Bonds.” This form requires specific information about the bond and the bond owner. Obtaining a certified signature is a key step for paper bond redemption, often provided by a financial institution, such as a bank or credit union, where you have an account.

After completing the form and securing the necessary signature certification, the paper bond and the form must be mailed to the Treasury for processing. The funds, including the principal and accrued interest, will then be disbursed to you, typically via direct deposit to your bank account. If any savings bond is redeemed before five years, you will forfeit the last three months of interest.