Treasury Direct Savings Bond Redemption Calculator
Calculate the redemption value of US Series EE and Series I savings bonds with accrued interest, 3-month early-redemption penalty, 20-year EE doubling guarantee, and tax-free education exclusion. Free, private.
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How EE and I-Bond redemption values are calculated
US Series EE and Series I savings bonds accrue interest monthly while held. The current redemption value at any point is the original face value plus all accrued interest minus any early-redemption penalty. The Treasury publishes the exact accrual tables on TreasuryDirect.gov; this calculator estimates the value using a compound-interest approximation that's accurate within ~1% for typical hold periods.
For an EE bond purchased after May 2005, the rate is fixed at issue (currently around 2.7% for May-Oct 2026 issues). The bond is also guaranteed to double in value after exactly 20 years — equivalent to about 3.5% APY. If the accrued interest after 20 years is less than the doubling amount, the Treasury makes a one-time adjustment to bring the value to 2× face. After year 20 the bond resumes accruing at the original fixed rate until final maturity at 30 years.
The 3-month early-redemption penalty
You cannot redeem any savings bond in its first 12 months. From month 13 through month 60 (year 5), redemption forfeits the most recent 3 months of accrued interest as a penalty. After 5 years, you can redeem any time with no penalty. After 30 years, the bond reaches final maturity and stops accruing interest — but it remains a valid claim and is redeemed at full accrued value.
Example: a $1,000 EE bond purchased in 2022 at 2.10% rate, redeemed in 2026 (4 years held). Accrued interest is roughly $87. Penalty (3 months at 2.10%) is about $5. Net redemption value is $1,082. Federal tax at 22% bracket on $87 interest is $19, leaving an after-tax net of $1,063.
Tax-free education exclusion (IRC Section 135)
If you use savings bond proceeds for qualified higher education expenses (tuition + required fees, not room/board) in the same year as redemption, all accrued interest is federal-tax-exempt. The expenses can be for the bondholder, spouse, or dependents at any accredited college, university, or vocational school. For 2026, the exclusion phases out at MAGI $96,800-$111,800 single and $145,200-$175,200 married filing jointly.
To qualify: (1) bond must be issued after 1989, (2) bondholder must have been 24+ at issuance, (3) education expenses must be paid in the same calendar year, and (4) bonds must be owned by parent (not gift to student). Use Form 8815 to claim the exclusion at tax time.
How to use this calculator
Select your bond series (EE or I), enter the face value at purchase, your current rate (find this on the TreasuryDirect.gov "value calculator" or your bond's certificate), and years held. Choose whether you'll use the proceeds for qualified education (which makes interest tax-free). Pick your federal tax bracket — the bond interest will be taxed at this ordinary-income rate.
The calculator returns: gross redemption value (face + accrued interest), the 3-month interest penalty if applicable, federal tax owed, and the final net amount you'll receive. For EE bonds held 20+ years, the doubling guarantee is applied if accrued interest hasn't reached 2× face. Use this to time redemptions, plan estimated tax payments, or decide whether to hold until the 20-year doubling milestone.
Source: TreasuryDirect.gov (savings bond rates and accrual rules) and IRS Pub 550 + IRC Section 135 — updated May 2026.