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Suppose you invest $100 at a compound interest rate of 10%. The rule of 72 tells you that your money will double every seven years, approximately: If you graph these points, you start to see the familiar compound interest curve:
Simply divide 72 by 1.2. The answer, 60, is the total years necessary for the bond to double in value. If the Series EE savings bond earned 0.5%, it would take 144 years to double in value (72/0.5 = 144)! By looking at Series EE savings bonds in this light, you are better equipped to decide if they are right for your portfolio.