You buy savings bonds directly from the U.S. Treasury through TreasuryDirect, an online platform run by the federal government

You cannot buy savings bonds from a bank, broker, or financial advisor. The Treasury stopped selling paper bonds in 2011. Today, all new savings bonds are electronic and purchased only through TreasuryDirect at treasurydirect.gov. You set up an account, link a bank account, and buy bonds online. The entire process takes about 15 minutes once your account is active.

The Treasury issues two types of savings bonds you can buy: Series EE bonds and Series I bonds. Series EE bonds earn a fixed interest rate set by the Treasury and may provide for 30 years. Series I bonds earn interest that changes every six months based on inflation. Both require a minimum purchase of $25 and a maximum of $10,000 per calendar year per person per bond type.

Key Takeaways

  • You must create a TreasuryDirect account with a valid Social Security number, email address, and U.S. bank account to buy savings bonds online.
  • Series EE bonds earn a fixed rate; Series I bonds earn a rate that adjusts for inflation every six months.
  • The minimum purchase is $25 and the maximum is $10,000 per calendar year for each bond type.
  • Bonds are held electronically in your TreasuryDirect account and can be redeemed online after one year, though you lose the last three months of interest if you cash them before five years.

Setting up your TreasuryDirect account

Go to treasurydirect.gov and click "Open an Account." You will need a valid Social Security number, an email address you check regularly, and a U.S. bank account in your name (checking or savings). The Treasury uses your bank account to withdraw money when you buy bonds and to deposit money when you redeem them.

During account creation, you will set up a username and password. The Treasury will send a confirmation email. Click the link in that email within 24 hours to verify your address. After verification, you can log in and link your bank account by providing your routing number and account number. This step usually takes one business day to confirm.

If you are buying bonds for a minor, you must open a separate account as the parent or legal guardian. The minor's Social Security number goes on that account, but you control it until they turn 18. You cannot add a minor to your own account.

Choosing between Series EE and Series I bonds

Series EE bonds lock in a fixed interest rate for the life of the bond. The rate changes every six months, so a bond you buy in January will earn a different rate than one you buy in July. The current rate is posted on treasurydirect.gov before you buy. These bonds take 20 years to reach face value if you buy them at the 50% discount (you pay $50 for a $100 bond), though they continue earning interest for 30 years total.

Series I bonds earn a composite rate made up of two parts: a fixed rate and an inflation rate. The fixed rate never changes for that bond. The inflation rate adjusts every six months based on the Consumer Price Index. If inflation rises, your rate rises. If inflation falls, your rate can only drop to the fixed rate floor — it will not go below that. You buy Series I bonds at face value (you pay $100 for a $100 bond).

Choose Series EE if you want predictability and can wait for the bond to mature. Choose Series I if you want protection against inflation eating into your returns. Many people buy both types to diversify.

Buying your first bond

Log into your TreasuryDirect account and click "BuyDirect." Select the bond type (Series EE or Series I). Enter the amount you want to spend, between $25 and $10,000 per calendar year. The system will show you the current interest rate for that bond type. Review the details and confirm your purchase.

The Treasury will withdraw the money from your linked bank account within one business day. Your bond appears in your account immediately, but the purchase is not final until the money clears. You will receive an email confirmation with your bond details, including the purchase date, amount, and rate.

You can buy bonds as often as you want throughout the year, as long as you do not exceed $10,000 per bond type per calendar year. Many people set up a monthly purchase plan through TreasuryDirect to buy a small amount automatically each month.

Understanding the holding period and redemption rules

You must hold a savings bond for at least one year before you can redeem it. If you try to cash it before one year has passed, the Treasury will reject the request. After one year, you can redeem the bond anytime through your TreasuryDirect account, and the money will be deposited into your bank account within two business days.

If you redeem a bond before it has been held for five years, you lose the last three months of interest. For example, if you buy a bond in January and redeem it in March of the following year, you get the interest earned through December but lose the interest from January, February, and March. After five years, you keep all the interest earned.

Series EE bonds continue earning interest for 30 years. Series I bonds earn interest for 30 years as well. You do not have to redeem them when they stop earning interest, but they will not grow after that point. Most people redeem them once they reach their goal or need the money.

Tax treatment of savings bond interest

The interest you earn on savings bonds is subject to federal income tax but not state or local income tax. You have two choices for when to pay the tax: you can report the interest each year as you earn it, or you can wait and report all the interest when you redeem the bond. Most people choose to wait because it delays the tax bill.

If you use the bond proceeds to pay for may have access to education expenses (tuition and fees at an accredited college, university, or vocational school), you may be able to exclude the interest from your taxable income. This is called the Education Savings Bond Program. The bond must have been issued after 1989, and you must meet income limits. You report this on your tax return using IRS Form 8815.

What to do if you lose access to your account

If you forget your password, click "Forgot Username or Password" on the TreasuryDirect login page. You will answer security questions and receive a reset link by email. If you no longer have access to the email address on your account, you will need to contact TreasuryDirect by phone at 844-284-2676 to update it.

If your account is hacked or you suspect fraud, call TreasuryDirect immediately. They can freeze your account and investigate unauthorized purchases. Do not wait to report suspicious activity.

Frequently Asked Questions

Can I buy savings bonds as a gift for someone else?

You can buy a bond in someone else's name if you have their Social Security number and permission, but you must do it through their own TreasuryDirect account. You cannot buy a bond in your account and transfer it to them. Some people give a TreasuryDirect account login as a gift instead, allowing the recipient to manage the bonds themselves.

What happens if I need the money before one year?

You cannot redeem a savings bond before one year has passed. The Treasury will not process the request. If you need emergency money, you will have to use a different source. Plan to keep savings bonds as money you will not touch for at least 12 months.

Do I have to buy bonds in round numbers like $100 or $1,000?

No. You can buy any amount between $25 and $10,000 per year per bond type. You could buy a $47 bond or a $3,250 bond. The system accepts any dollar amount in that range.

Can I change my mind after I buy a bond?

No. Once you purchase a bond through TreasuryDirect, the transaction is final. You cannot cancel it or get a refund. Your only option is to hold it until you can redeem it after one year.

What if TreasuryDirect goes down or has technical problems?

TreasuryDirect is maintained by the U.S. Treasury and is generally reliable, but outages do happen. If the site is down when you want to buy or redeem, wait until it is back up. There is no rush — you can buy bonds anytime during the year, and redemptions are processed whenever you submit them.