You can buy savings bonds directly from the U.S. Department of the Treasury through TreasuryDirect, or through a bank or broker
The easiest route for most people is TreasuryDirect, the Treasury's own online platform. You create an account, link a bank account, and purchase bonds directly without a middleman or commission. Series I bonds (inflation-adjusted) and Series EE bonds (fixed-rate) are both sold this way, along with Treasury bills, notes, and bonds of various lengths.
If you prefer to work with a financial institution, you can buy through a bank, credit union, or brokerage firm. These typically charge a fee or commission, but some banks offer purchases at no cost to existing customers. The trade-off is convenience: a broker can walk you through the process and hold the bonds in an account alongside other investments, but you'll pay for that service.
Paper savings bonds still exist but are no longer sold at banks. The only way to get a paper bond now is through a tax refund: you can request that the IRS issue Series I or EE bonds as part of your refund instead of a check or direct deposit.
Key Takeaways
- TreasuryDirect is free and requires only an online account linked to a checking or savings account at a U.S. bank.
- Banks, credit unions, and brokers can sell you bonds but typically charge a fee unless you have an existing relationship with them.
- You can request Series I or EE bonds as part of your federal tax refund, which arrive as paper certificates.
- TreasuryDirect has purchase limits: $10,000 per calendar year for electronic bonds and an additional $5,000 if you use your tax refund.
- All purchases through any channel are backed by the full faith and credit of the U.S. government.
How to set up a TreasuryDirect account
Go to treasurydirect.gov and select "Open an Account." You'll need a Social Security number, email address, and a U.S. bank account (checking or savings). The site will verify your identity using information from your credit file, similar to opening a bank account online.
Once your account is active, you link your bank account for transfers. You can then purchase bonds immediately. The money moves from your bank to the Treasury, and the bonds appear in your account within one business day. You can hold the bonds in your TreasuryDirect account indefinitely, and they earn interest automatically.
TreasuryDirect also lets you set up a "SmartExchange" to automatically reinvest your bonds when they mature, so you don't have to remember to repurchase. This is useful if you want to keep money in savings bonds long-term without taking action each time one matures.
Buying through banks and brokers
Most major banks (Bank of America, Wells Fargo, Chase) and online brokers (Fidelity, Charles Schwab, E-Trade) sell Treasury securities and savings bonds. You typically place an order through their website or by calling a representative, and they handle the purchase on your behalf.
Fees vary widely. Some banks charge nothing if you're an existing customer; others charge $25 to $50 per transaction. Brokers often charge a commission or markup on the price. Before you buy, ask what the total cost will be, including any fees. For small purchases, the fee can eat into your return, so compare it against buying free through TreasuryDirect.
The advantage of using a broker is that your bonds sit in the same account as your stocks, mutual funds, or other investments. You see everything in one place and can sell bonds before maturity if you need the money (though you may face a penalty on Series I and EE bonds if you cash them in before five years).
Tax refund bonds and paper certificates
When you file your federal tax return, you can request that part or all of your refund be issued as Series I or EE savings bonds. You fill out Form 8888 and specify the amount you want in bonds. The IRS will mail paper certificates to your address.
This is the only way to get paper bonds now. They work the same as electronic bonds—they earn interest and mature after 30 years—but you hold the physical certificate. If you lose it, the Treasury can issue a replacement, but you'll need to file a claim and provide proof of loss.
Paper bonds are less convenient than electronic ones because you can't check their value online or set up automatic reinvestment. However, some people prefer them as a tangible savings tool or for gifting to children.
Understanding TreasuryDirect purchase limits
TreasuryDirect caps how much you can buy in a single calendar year. For electronic Series I and EE bonds, the limit is $10,000 per person per year. If you also request bonds through your tax refund, you can buy an additional $5,000 in Series I bonds (not EE) that same year, for a total of $15,000.
These limits reset on January 1 each year. If you hit the cap in November, you can start fresh purchases again in January. There is no limit on how many Treasury bills, notes, or bonds you can buy—only on savings bonds specifically.
If you're married and both spouses have TreasuryDirect accounts, each person gets their own $10,000 annual limit, so a household can purchase up to $20,000 in electronic bonds per year (plus $10,000 more through tax refunds).
Comparing costs: TreasuryDirect versus banks and brokers
| Purchase Method | Cost | Best For |
|---|---|---|
| TreasuryDirect | Free | Most people; no fees, direct ownership, simple interface |
| Bank (existing customer) | Often free; some charge $25–$50 | People who want bonds in one account with other investments |
| Online broker | Commission or markup, typically $25–$100+ | Active investors managing a portfolio; less useful for buy-and-hold |
| Tax refund | Free | People who want paper bonds or prefer automatic savings |
What happens after you buy
Once you own a bond, it earns interest automatically. Series I bonds earn a rate that changes every six months based on inflation; Series EE bonds earn a fixed rate for the life of the bond. You don't have to do anything—the interest accrues in your account.
You can check your bond's current value anytime through TreasuryDirect or your broker's website. If you need to cash in a bond before it matures, you can do so, but there are penalties: Series I and EE bonds lose the last three months of interest if you cash them in before five years. After five years, there's no penalty, though you still forfeit some interest if you sell before the full term.
When a bond matures (after 30 years for savings bonds), the principal and all accrued interest are returned to your account. With TreasuryDirect, you can set up automatic reinvestment so the money buys a new bond immediately, or you can let it sit as cash in your account.
Frequently Asked Questions
Can I buy savings bonds for someone else as a gift?
Yes. Through TreasuryDirect, you can purchase bonds in another person's name if you have their Social Security number and they have a TreasuryDirect account. Alternatively, you can buy paper bonds through a tax refund and give the certificate to someone. Some brokers also allow you to purchase bonds in another person's name, though policies vary.
What's the difference between buying through TreasuryDirect and a broker?
TreasuryDirect is free and direct—you own the bonds outright in your Treasury account. A broker charges a fee but holds the bonds alongside your other investments in one account. For most people buying a modest amount, TreasuryDirect is cheaper. Brokers make sense if you're actively trading or want everything in one place.
Do I need a minimum amount to buy savings bonds?
No. TreasuryDirect lets you buy bonds in any amount from $25 up to your annual limit. Some brokers have minimums, typically $1,000 or $5,000 per purchase, so check before you open an account.
Can I sell a savings bond before it matures?
Yes, but with a cost. If you cash in a Series I or EE bond before five years, you lose the last three months of interest. After five years, you can cash it in without that penalty, though you still won't earn interest after the cash date. Treasury bills, notes, and bonds can be sold anytime through a broker, though you may get more or less than you paid depending on interest rates.
What if I lose my TreasuryDirect password or can't access my account?
TreasuryDirect has a password reset tool on its website. If you can't regain access, you can contact the TreasuryDirect customer service line at 844-284-2676. They can verify your identity and help you recover your account. Your bonds are safe—they're held by the Treasury regardless of whether you can log in.