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    harkplumb's Avatar
    harkplumb Posts: 13, Reputation: 1
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    #1

    Jun 8, 2019, 05:22 AM
    U.S. Savings bond question
    I am trying to establish the cash-in value on a group of bonds that have been cashed. I know the following about the bonds:

    These are all E and EE Bonds that have all reached maturity and were all earning interest beyond their Face Value. And I know the face value of each bond.

    I also have a statement from the IRS which indicates the actual earned interest on these bonds when they were cashed.

    So...since I know two pieces of factual information about the bonds; Face Value and actual IRS reported earned interest, would I arrive at the actual cash-in value by using the following formula?

    KNOWN FACE VALUE + KNOWN EARNED INTEREST = TOTAL CASH-IN VALUE

    I have had three people (supposedly experts) say "YES" this formula is correct at arriving at actual cash-in total. However, I had one expert say "No" this is not correct for the following reason: He stated that paper bonds are purchased at 1/2 of the face value and part of the earned interest is what is used to make up the other half of face value; and then earning additional interest beyond the face value of the bond. So he said the CORRECT formula would be:

    1/2 OF KNOWN FACE VALUE + KNOWN EARNED INTEREST = TOTAL CASH-IN VALUE.

    I'm getting these two conflicting opinions. Which one is correct?
    Specter1's Avatar
    Specter1 Posts: 85, Reputation: 2
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    #2

    Aug 19, 2019, 05:24 AM
    Series E and EE savings bonds are worth their face value upon maturity. Beyond their maturity date they earn interest based on the attached Treasury Department schedule up until 30 years from the issue date, at which time they cease accruing interest.

    https://www.treasurydirect.gov/news/...ondratespr.htm

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