1. What is US Savings Bonds Series E?

US Savings Bonds Series E were government-issued bonds sold between 1941 and 1980. They were non-transferable, interest-bearing securities that helped finance government operations while providing a safe investment option for Americans.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Face\ Value \) — The original denomination of the bond ($)
• \( Redemption\ Factor \) — A decimal value representing the current redemption value percentage (0.0 to 1.0)

Explanation: The redemption factor accounts for the bond's accumulated interest and remaining value based on its issue date and current redemption date.

3. Importance of Bond Valuation

Details: Accurate bond valuation is crucial for determining the current worth of Series E bonds, understanding their investment performance, and making informed financial decisions about redemption or continued holding.

4. Using the Calculator

Tips: Enter the bond's face value in dollars and the appropriate redemption factor (typically found in official Treasury redemption tables). Ensure both values are positive numbers with the redemption factor between 0 and 1.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find the redemption factor for my Series E bond?
A: Redemption factors are available through the US Treasury's official website or published redemption tables that correspond to your bond's issue date and redemption date.

Q2: Are Series E bonds still earning interest?
A: Most Series E bonds stopped earning interest after 30 years from their issue date. Check the specific maturity date of your bond to determine if it's still accruing interest.

Q3: Can I still redeem Series E bonds?
A: Yes, Series E bonds can still be redeemed at most financial institutions, though they may need to be sent to the Treasury for processing if the institution cannot handle them directly.

Q4: How is the redemption factor determined?
A: The redemption factor is based on the bond's original interest rate, the time held, and any applicable extension periods or special redemption provisions.

Q5: Are there tax implications when redeeming Series E bonds?
A: Yes, the interest earned on Series E bonds is subject to federal income tax, though exempt from state and local taxes. You may choose to report interest annually or defer until redemption.