1. What is the I Bonds Value Calculator?

The I Bonds Value Calculator determines the current worth of Series I Savings Bonds based on their face value and the current inflation adjustment factor. I Bonds are U.S. government savings bonds that earn interest based on both a fixed rate and an inflation rate.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Face \) — The original denomination of the bond (e.g., $50, $100, etc.)
• \( Current\ Factor \) — The current multiplier that accounts for all interest earned to date

Explanation: The current factor is published by the Treasury Department and incorporates both the fixed rate and all inflation adjustments since the bond was issued.

3. Importance of I Bonds Valuation

Details: Knowing the current value of I Bonds is essential for financial planning, tax reporting, and deciding when to redeem the bonds for maximum benefit.

4. Using the Calculator

Tips: Enter the face value in USD and the current factor (available from TreasuryDirect.gov). The calculator will compute the current redemption value.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find the current factor for my I Bond?
A: Current factors are published monthly on TreasuryDirect.gov or can be calculated using the Savings Bond Calculator tool provided by the Treasury.

Q2: How often does the factor change?
A: The inflation component changes every 6 months (May and November), while the fixed rate is set when the bond is purchased.

Q3: What's the minimum holding period for I Bonds?
A: You must hold I Bonds for at least 1 year, and if redeemed before 5 years, you lose the last 3 months of interest.

Q4: Are I Bonds taxable?
A: Yes, the interest is subject to federal tax but exempt from state and local taxes. You can choose to report annually or at redemption.

Q5: What's the maximum I can invest in I Bonds?
A: The annual purchase limit is $10,000 per Social Security Number in electronic bonds plus up to $5,000 in paper bonds via tax refund.