The exact nominal value of a 30-year-old $50 savings bond depends on its specific issue date and the prevailing interest rates it earned throughout its lifetime. However, all Series EE savings bonds stop earning interest after 30 years, and a $50 face value bond (purchased for $25) will be worth more than its $50 face value at that point due to accrued interest.
Understanding Series EE Savings Bonds
Series EE savings bonds are popular, low-risk investments issued by the U.S. Treasury.
- Purchase Price: A $50 Series EE savings bond is typically purchased for half its face value, meaning you would pay $25 for a $50 bond.
- Maturity Period: These bonds earn interest for up to 30 years from their issue date.
- Value Growth: Series EE bonds are guaranteed to at least double in value to their face value within a certain period (e.g., 17 years for bonds issued after May 1980). They then continue to accrue interest beyond their face value until their 30-year final maturity.
Nominal Value vs. Real Value
When determining the "worth" of a savings bond, it's important to distinguish between its nominal value and its real value:
- Nominal Value: This is the actual cash amount you would receive if you redeem the bond. For a 30-year-old $50 bond, its nominal value will be greater than $50, as it has accumulated interest for the entire 30-year period.
- Real Value (Purchasing Power): This refers to what the bond's nominal value can purchase in goods and services, adjusted for inflation over time. Over three decades, inflation significantly erodes purchasing power. While the nominal value grows, its ability to buy the same amount of goods or services as it could when initially purchased might change. For a $50 Series EE savings bond initially purchased for $25, after thirty years, its real value is often considered to be approximately $50. This implies that the investment has effectively doubled the purchasing power of the original $25. Therefore, despite significant nominal growth, its real worth might be equivalent to $50 in today's dollars, highlighting the impact of long-term inflation.
How to Find the Exact Value of Your Bond
To determine the precise nominal value of your specific 30-year-old savings bond, you will need its serial number. The U.S. Treasury provides an online tool for this purpose:
- Access TreasuryDirect: Visit the official TreasuryDirect website.
- Use the Calculator: Navigate to the "Treasury Hunt" or "Bond Value Calculator" section.
- Enter Information: Input your bond's serial number, denomination, and issue date. The calculator will provide its current redemption value.
Example Comparison
To illustrate the difference, consider how nominal value must grow to keep up with purchasing power:
| Aspect | Nominal Value | Real Value (Purchasing Power) |
|---|---|---|
| Definition | The current cash value of the bond. | The value of the bond's cash amount adjusted for inflation. |
| For a 30-Year-Old $50 EE Bond | Varies by issue date, but always significantly > $50. | Approximately $50, indicating the original $25 purchasing power has roughly doubled over 30 years. |
| Key Factor | Interest rates, issue date. | Inflation over the bond's holding period. |
Understanding both the nominal and real value provides a comprehensive view of what your 30-year-old savings bond is truly "worth."
