How Much is a $100 Savings Bond Worth After 20 Years? (EE vs. iBonds)

Wondering what your $100 savings bond will be worth in 20 years? The answer depends on which type you choose – EE bonds or iBonds have different growth patterns and guarantees. This guide breaks down real examples for both bond types and shows you how to calculate exact values using our free bond calculator tool.

Whether you’re planning for retirement or simply want to understand your existing bonds, knowing the 20-year value helps you make smarter savings decisions. Let’s explore how each bond type performs over two decades.

EE Bonds: $100 Investment After 20 Years

EE bonds offer the most straightforward answer to the 20-year question. Here’s what makes them unique:

The 20-Year Guarantee

When you buy an EE bond, you pay half the face value upfront. For a $100 face value EE bond, you pay $50 today. The U.S. Treasury guarantees that your bond will reach its full face value ($100) within 20 years, regardless of interest rates.

This means your $50 investment will always be worth at least $100 after 20 years – a guaranteed doubling of your money.

Current Interest Rates and Early Value

EE bonds currently earn a fixed rate set every six months. As of late 2024, new EE bonds earn 2.70% annually. However, even if rates drop significantly, the 20-year doubling guarantee ensures your minimum return.

If interest rates stay at current levels, your bond might actually be worth more than $100 before hitting the 20-year mark. But if rates fall, the Treasury will make a one-time adjustment at year 20 to bring your bond to the full $100 value.

Tax Considerations

The growth on your EE bond ($50 to $100) represents $50 of interest income. You’ll pay federal taxes on this gain when you redeem the bond, but it’s exempt from state and local taxes. You can also defer federal taxes until redemption or final maturity (30 years).

iBonds: $100 Investment After 20 Years

iBonds work differently because they adjust for inflation throughout their life.

Purchase Price and Growth Pattern

Unlike EE bonds, you pay full face value for iBonds. A $100 iBond costs $100 upfront. There’s no guaranteed doubling, but you get inflation protection that EE bonds don’t offer.

Variable Returns Based on Inflation

iBonds earn two types of interest:

A fixed rate (set when you purchase)
An inflation rate (adjusted every six months based on CPI-U)

Your final 20-year value depends entirely on inflation trends over that period.

Historical Examples

Let’s look at real scenarios:

2004 iBond (20 years to 2024):

Purchase price: $100
Fixed rate: 1.00%
Average inflation over 20 years: approximately 2.5%
Estimated 2024 value: around $164

2014 iBond (projected to 2034):

Purchase price: $100
Fixed rate: 0.10%
If inflation averages 3% over 20 years: approximately $181
If inflation averages 2% over 20 years: approximately $149

Inflation Protection Benefits

The key advantage of iBonds is maintaining purchasing power. Even if your bond grows from $100 to $160 over 20 years, that $160 should buy roughly the same amount of goods that $100 bought when you purchased the bond.

Use our iBond calculator to model different inflation scenarios for your specific purchase date and see projected values based on various economic conditions.

Side-by-Side Comparison: Which Performs Better?

The “better” choice depends on your priorities and economic conditions over 20 years.

When EE Bonds Win:

Low inflation periods (under 3.5% annually)
You want guaranteed growth regardless of economic conditions
You prefer simplicity and predictability

When iBonds Win:

High inflation periods (over 3.5% annually)
You’re concerned about maintaining purchasing power
You want protection against unexpected inflation spikes

Real-World Scenarios:

In a low-inflation environment (2% annually for 20 years):

EE bond: $50 investment becomes $100 (100% return)
iBond: $100 investment becomes approximately $149 (49% return)

In a high-inflation environment (4% annually for 20 years):

EE bond: $50 investment becomes $100 (100% return)
iBond: $100 investment becomes approximately $219 (119% return)

Break-Even Point:

iBonds need inflation to average about 3.5% annually over 20 years to match the guaranteed return of EE bonds when comparing dollar-for-dollar investments.

Risk Tolerance and Liquidity:

Both bonds have a 5-year minimum holding period with a 3-month interest penalty for early redemption before 5 years. However, EE bonds offer more predictable planning since you know the minimum 20-year value upfront.

Practical Tips & Tool Integration

Our free iBond calculator helps you project exact values for both bond types based on your specific situation.

For EE Bonds:

Enter your purchase date and amount
The calculator shows guaranteed 20-year value
Compare current value vs. waiting for the full guarantee

For iBonds:

Input your purchase date and fixed rate
Try different inflation scenarios (conservative, moderate, aggressive)
See how various economic conditions affect your 20-year outcome

Step-by-Step Example:

Let’s say you’re considering a $100 face value investment today:

EE Bond Option:

Pay $50 now
Guaranteed $100 in 2044
Use calculator to see if current rates would get you there sooner

iBond Option:

Pay $100 now
Model 2%, 3%, and 4% average inflation scenarios
Compare projected 2044 values

Visit our bond calculator to run these scenarios with real-time rates and see personalized projections for your investment timeline.

Frequently Asked Questions

Do I pay $100 for a $100 savings bond?

EE bonds cost $50 for $100 face value, while iBonds cost full $100. This affects your actual investment amount and returns. When comparing options, consider that you’re investing different amounts upfront.

Can I lose money on savings bonds?

No, both EE and iBonds are backed by the U.S. Treasury and cannot lose principal value. However, inflation could reduce purchasing power over time, which is why iBonds include inflation adjustments.

When should I redeem my 20-year-old bond?

EE bonds hit their guarantee at 20 years, while iBonds continue earning for 30 years total. Check current rates and your personal financial needs before deciding. Our calculator can help you compare holding versus redeeming.

Conclusion & Call-to-Action

A $100 EE bond guarantees $200 after 20 years (from your $50 investment), while iBonds provide inflation protection but variable returns. Your choice depends on whether you prioritize guaranteed growth or inflation protection.

EE bonds work well for conservative savers who want predictable outcomes, while iBonds suit those worried about maintaining purchasing power during inflationary periods.

Ready to calculate your specific situation? Use our free iBond calculator to model different scenarios and find the best strategy for your savings goals. Input your purchase dates, amounts, and inflation assumptions to see personalized 20-year projections for both bond types.

For more information about savings bonds, explore our comprehensive guides on bond basics and conservative investment strategies to make the most informed decision for your financial future.