After 20 years, a $50 Patriot bond is guaranteed to be worth at least its face value of $50.
Patriot bonds, a type of U.S. savings bond, were often purchased at half their face value. For instance, a $50 Patriot bond would have been bought for $25. The design of these bonds ensures that they will at least double in value by their 20-year mark.
Understanding Patriot Bond Value
These bonds are a secure investment, offering a guaranteed minimum return. While the actual interest rate can fluctuate over time, potentially leading to a higher value, the commitment ensures it will not fall below the face value after two decades.
Key Aspects of Patriot Bond Growth
- Initial Investment: A $50 Patriot bond was originally purchased for $25.
- Guaranteed Minimum: After 20 years, the bond is guaranteed to be worth a minimum of $50.
- Continued Accrual: Patriot bonds can continue to accrue interest for as many as 10 additional years beyond the initial 20-year period, potentially increasing their value further.
This structure provides investors with a clear understanding of the minimum return they can expect on their investment after a significant holding period.
Patriot Bond Value Progression
| Event | Value of a $50 Patriot Bond | Notes |
|---|---|---|
| Initial Purchase | $25 | Bought at half its face value |
| After 20 Years | At least $50 | Guaranteed to reach face value or more |
| After 20+ Years (up to 30) | Potentially More than $50 | Continues to accrue interest for 10 more years |
This guaranteed growth ensures that the initial investment significantly appreciates over two decades.
