How to Calculate Savings Bond Interest
If you are an investor who likes to minimize his risk and secure his investment and the potential profit, then buying saving bonds might be the best option for you. You must be aware of the term ‘Greater the risk, greater the return’. Here, your investment is risk free and still you warn a lucrative profit on your investment every year. The saving bonds issued by the United States are of two types; Series I and Series EE. There is no doubt about their credibility as they are issued through Department of Treasury.
Instructions
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1
Know the details of saving bonds
It is mandatory that the bond holder or a potential bond holder should know the details about the saving bonds. These saving bonds are supervised by the Bureau of Public Dept, thus there is no doubt on their credibility and your interest is guaranteed. Nevertheless, it is of utmost importance that you know other facts about the saving bonds being issued including the maturity date and the total term for accruing interest. -
2
Buy saving bonds
In order to secure your interest, it is necessary that you go to the website of Department of Treasury and purchase your saving bonds. At the website, you will also find the saving bonds value calculator that will help you estimate the worth of your bond and the profit you will be gaining from it. As said earlier, these bonds come into two different series, you will have to choose your bonds from Series I and Series EE. You will also be given an option to choose from the denomination of your preference. -
3
Enter the particulars of your bond(s)
In order to calculate the value of your bonds, you must know about their date of issuance and the serial numbers of your bonds. These are printed on the bond and you can easily find this information. In some cases, the online investors are often provided with the facility to make an inventory of saving bonds if there is more than one value. -
4
Calculate a future date
To know about your bond’s value at a particular date, you will have to change ‘value as of’ in the online calculator. Note that the interest accrues on a monthly basis and is compounded semi-annually to guarantee the return to investor. In case of Series EE bonds, remember that investor is guaranteed full face value after 20 years.
