1. What is Treasury Direct I Bonds Calculator?

The Treasury Direct I Bonds Calculator estimates the future value of Series I savings bonds based on their fixed rate, current inflation rate, and holding period. I bonds are U.S. government savings bonds that earn interest based on combining a fixed rate and an inflation-adjusted rate.

2. How Does the Calculator Work?

The calculator uses the I Bonds formula:

Where:

• \( Face \) — Original bond purchase amount (USD)
• \( Inflation\ Rate \) — Current inflation rate (%)
• \( Fixed\ Rate \) — Bond's fixed interest rate (%)
• \( Periods \) — Number of compounding periods

Explanation: The equation accounts for both the fixed rate component and the inflation adjustment that changes every six months.

3. Importance of Bond Value Calculation

Details: Calculating the projected value helps investors understand the real return on their investment after accounting for inflation, which is particularly important for long-term savings.

4. Using the Calculator

Tips: Enter the bond's face value in USD, current inflation rate (%), fixed rate (%), and number of periods. All values must be valid (face value > 0, periods ≥ 1).

5. Frequently Asked Questions (FAQ)

Q1: How often do I bonds compound?
A: I bonds compound semiannually, with the inflation rate adjusting every six months based on CPI-U changes.

Q2: What is the minimum investment for I bonds?
A: The minimum electronic purchase is $25, while paper bonds (through tax refunds) have a $50 minimum.

Q3: Are there penalties for early redemption?
A: Yes, if redeemed before 5 years, you lose the last 3 months of interest. After 5 years, no penalty applies.

Q4: How are the rates determined?
A: The fixed rate is set when you buy the bond and stays constant. The inflation rate adjusts every May 1 and November 1.

Q5: What's the maximum annual purchase amount?
A: $10,000 per Social Security Number per calendar year for electronic bonds, plus up to $5,000 in paper bonds via tax refund.