EE Savings Bond Interest Rate

[mitchden1]

I just cashed in a EE Savings Bond issued in June 1994. The bank told me the interest amount and I will include that on my 2024 tax return. I knew the interest amount last month (May 1994) but wanted to wait until June so I would get the 6-month interest for the period (Jan. 2023 - June 2024). I thought it the rate was 4% compounded semi-annually. The difference in interest ($25.00) face value between May 2024 and June 2024 is only $0.28. If I did my arithmetic correctly, that's less than 1% annually. Could that be correct? If so, I should cash in my other savings bonds that reach 30 years in the next few months and years.

[Mike9241]

that seems correct because the 28 cents only represents the additional interest from May to June

the value including accrued interest in December 2023 80.44. 4% for 1/2 year about $1.60. one month

+1.60/6 or 28 cents. 

[mitchden1]

I'm a little confused. I thought interest is only "earned" every 6 months. If I cashed the savings bond in Jan. , Feb. March. April or May, I would have gotten $0.28 less than cashing it in June. June was the end of the 6-month period and also the 30-year end.

[VolvoGirl]

Here is the Saving Bonds Calculator.  You can get the value for any time period.    I  entered all my bonds and saved my inventory.  So every 6 months or so I can look up the value to enter into my Quicken program.  
https://treasurydirect.gov/BC/SBCPrice

[Opus 17]

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@mitchden1 wrote:

I'm a little confused. I thought interest is only "earned" every 6 months. If I cashed the savings bond in Jan. , Feb. March. April or May, I would have gotten $0.28 less than cashing it in June. June was the end of the 6-month period and also the 30-year end.

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Be aware that the government has changed the rules on interest calculations several times, so for a bond issued in 1994, you need to know what the 1994 rules were, not what the rules are today.  

[VolvoGirl]

The saving bond calculator works better in Internet Explorer than google or chrome.  Here's what it looks like

[mitchden1]

Thanks.  I never knew that I can cash out a Bond before the end of a 6-month period and not lose any accrued interest. Was I earning 4% interest on the Bond that was issued in June 1994?

I have other bonds that were issued in September 1994 and October 1994. Would you know if those bonds are also earning 4%? 

[VolvoGirl]

Just enter them into the Treasury calculator i posted the link above.  It will give you the current rate on them.