How Long Does it Take to Get Double on Bonds?

Series EE Savings Bonds

Series EE savings bonds can be purchased at banks, through payroll savings plans or direct from the Treasury Direct website. Series EE bonds earn a fixed rate of interest for as long as the bond is outstanding. The interest on savings bonds accrues to the bond value and is credited every month. Series EE savings bonds can be purchased with amounts from $25 to $5,000, and the face amount of a paper EE savings bond will be twice the purchase price.

Series EE savings bonds are guaranteed to reach the face amount or double the original investment amount no later than 20 years after a bond is issued. The 20-year guarantee applies to savings bonds issued since June 2003. Series EE bonds issued from May 1995 until May 2003 have a 17-year guarantee to double. Savings bonds issued from March 1993 until April 1995 have an 18-year face value guarantee. Series EE bonds issued before March 1993 had a much shorter time period to double, and all have more than doubled in value.

If a series EE savings bond has not earned enough interest by the 20-year point to double in value, the Treasury Department will make a one-time interest credit to the bond to bring the value up to the guarantee. Depending on the interest rate the bond has been earning, the bonus interest credit may be significant. After the bonus interest has been credited to a savings bond, the bond will continue to earn interest at the issue rate.

For a savings bond to double in value in 20 years solely on interest earned, the bond's rate must be at least 3.5 percent. As of May 2011, savings bonds had not been issued with rates as high as 3.5 percent since 2007. The rate earned on EE bonds issued in May 2011 is 1.10 percent. At this rate of interest, a saving bond purchase for $100 would have accrued interest to a value of $124.53 after 20 years. The bonus interest at 20 years will be $75.47 to bring the bond up to the guaranteed value of $200.