1. What is a Series I Bonds Calculator?

Definition: This calculator estimates the current value of Series I savings bonds based on the face value, annual interest rate, and number of years held.

Purpose: It helps investors track the growth of their Series I bonds and plan their investments.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( Value \) — Current value of the bond ($)
• \( Face\ Value \) — Original purchase amount ($)
• \( Rate \) — Annual composite rate (decimal)
• \( Periods \) — Number of years held

Explanation: The formula calculates how the bond's value grows with compound interest over time.

3. Importance of Series I Bonds Calculation

Details: Series I bonds protect against inflation while providing a safe return, making them valuable for conservative investors.

4. Using the Calculator

Tips: Enter the bond's face value, current annual interest rate (default 3.5%), and number of years held (default 5). All values must be ≥ 0.

5. Frequently Asked Questions (FAQ)

Q1: What are Series I bonds?
A: U.S. government savings bonds that earn interest based on both a fixed rate and an inflation-adjusted rate.

Q2: Where do I find my bond's current rate?
A: Check the TreasuryDirect website for current and historical rates.

Q3: How often do rates change?
A: The inflation-adjusted portion changes every 6 months based on CPI.

Q4: Are there tax advantages?
A: Yes, federal taxes are deferred until redemption, and they're exempt from state/local taxes.

Q5: What's the minimum holding period?
A: You must hold I bonds for at least 1 year, with penalties for redemption before 5 years.