EE Bond Interest Rate
Investors that purchase US savings bonds are lending the US government their money since itís considered a US Treasury security. In keeping with the times, savings bonds are issued both in paper and as electronic bonds.
An advantage of savings bonds is that the interest accrued on them need not be reported to the federal government for taxation purposes until the investor redeem their ee bonds. An exemption is when th ee savings bonds are used for the education of the holder, spouse or child. Another advantage is that investors are assured that payment will be made in full when redeemed, since the US government is the issuer of this debt.
Calculating the value of an EE bond is extremely easy. You can either complete the calculation manually or with a calculator.
You start by taking note of the savings bond's face value and the interest rate assigned to it. Then multiply the face value with the interest rate taking into consideration the present or future time you want to cash it in to arrive at the accrued interests. Now, add the accrued interest to the face value, deduct any penalties, and you have the savings bond value.
Savings Bond holders wanting to calculate their bonds value should have
1) The current value of the bond
2) The future value of the bond
3) The Interest Rate of the Bond
4) The Savings Bond duration Date
Once you have this information, you should easily be able to calculate the current value of your Series EE Savings Bond.
Savings bonds are available to US citizens with social security numbers. Foreign investors are unable to purchase Series EE Savings Bonds, unless their current US employer offers these bonds in the companyís savings plan. Buying Series EE Savings Bonds is a great way to save for your childís education or to have a solid nest egg that is available at any time if cash is needed.
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