You can buy savings bonds directly from the U.S. Treasury through TreasuryDirect, or through a bank or broker

The easiest route for most people is TreasuryDirect, the Treasury's online platform. You create an account, link a bank account, and purchase bonds electronically. No fees, no middleman. The alternative is buying through a bank or brokerage firm, which charges a commission but may feel more familiar if you already bank there.

The choice depends on what you want: TreasuryDirect is cheapest and fastest for straightforward purchases. A bank or broker makes sense if you want someone to manage the bonds for you, or if you prefer handling everything in one place with your existing financial institution.

Key Takeaways

  • TreasuryDirect is free and lets you buy bonds online with just a bank account and Social Security number or tax ID.
  • You can also buy savings bonds through most banks and brokerages, though they charge a commission on each purchase.
  • Series EE bonds and Series I bonds are the two types available to individual buyers, and you choose which when you purchase.
  • The minimum purchase is $25 for Series EE bonds and $50 for Series I bonds through TreasuryDirect, with no maximum limit per person per year.
  • Bonds are held electronically in your TreasuryDirect account or in paper form if you buy through a bank, and you can redeem them online or in person.

Setting up a TreasuryDirect account

Go to treasurydirect.gov and click "Open an Account." You will need a valid Social Security number or Individual Taxpayer Identification Number (ITIN), a U.S. address, and a bank account for electronic transfers. The site will ask for your name, date of birth, email, and phone number.

Once your account is created, you link your bank account for purchases and redemptions. The Treasury verifies your bank account with two small deposits (usually under $1 each), which you confirm in your online banking. This takes a few days. After that, you can buy bonds immediately.

TreasuryDirect accounts are free to open and maintain. There are no annual fees, no purchase fees, and no commission. The only cost is the price of the bond itself.

Buying bonds through TreasuryDirect

Log into your account and select "BuyDirect." You choose the bond type (Series EE or Series I), the amount, and the purchase date. The minimum is $25 for Series EE bonds and $50 for Series I bonds. You can buy up to $10,000 per calendar year in each series through TreasuryDirect, though you can purchase more if you use other channels like a bank.

The money is withdrawn from your linked bank account on the purchase date you select. The bond appears in your account electronically the same day. You can view your bonds anytime in TreasuryDirect, see their current value, and track interest earned.

If you want to buy bonds as a gift, you can set up a separate TreasuryDirect account in the recipient's name (if they are a minor, a parent or guardian manages it). Alternatively, you can buy through a bank or broker and give the paper bond certificate to the recipient.

Buying bonds through a bank or broker

Most banks and brokerage firms sell savings bonds, though not all do. Call your bank or log into your brokerage account and ask about savings bond purchases. The process is similar to buying any other investment: you place an order, specify the amount and type, and the firm executes it.

Banks and brokers charge a commission, typically $25 to $50 per transaction, though this varies by institution. Some charge a flat fee; others charge a percentage of the purchase amount. Ask what the fee is before you buy. For small purchases, the commission can eat into your return, so TreasuryDirect is usually better unless you have other reasons to use a bank.

Bonds purchased through a bank or broker may be held in paper form or electronically, depending on the firm. Ask whether you can transfer them to TreasuryDirect later if you want to manage them yourself. Some firms allow transfers; others do not.

Understanding the purchase limits

Through TreasuryDirect, you can buy up to $10,000 per calendar year in Series EE bonds and up to $10,000 per calendar year in Series I bonds. This limit resets on January 1 each year. The limit applies to each person, so a married couple can each buy $10,000 of each series annually.

If you want to buy more than $10,000 in a single series in one year, you can purchase the additional amount through a bank or broker. There is no annual limit on purchases through those channels, though individual institutions may set their own caps.

Paper bonds, which are less common now, have a separate limit: you can buy up to $5,000 in paper Series EE bonds per calendar year through the IRS (by requesting them with your tax refund). This is an older method and most people use TreasuryDirect instead.

What happens after you buy

Your bonds are held in your account and earn interest automatically. You do not need to do anything. For Series EE bonds, interest is compounded semiannually. For Series I bonds, interest is compounded monthly. You can check your account anytime to see the current value.

You can redeem (cash in) your bonds anytime after one year through TreasuryDirect or at a bank. If you redeem before five years, you lose the last three months of interest. After five years, you get all interest earned. Bonds continue to earn interest for up to 30 years, so you can hold them as long as you want.

When you redeem through TreasuryDirect, the money is deposited into your linked bank account within a few business days. If you redeem at a bank, you get the money immediately but may pay a small fee.

Choosing between Series EE and Series I bonds

Series EE bonds have a fixed interest rate set by the Treasury and do not change. The rate is announced every six months. These bonds are predictable: you know exactly what you will earn. They are a good choice if you want steady, may provide growth.

Series I bonds have an interest rate that changes every six months based on inflation. The rate is the sum of a fixed rate (set by the Treasury) plus an inflation rate (based on the Consumer Price Index). When inflation is high, Series I bonds earn more. When inflation is low, they earn less. These bonds protect you against inflation eating into your savings.

The choice depends on your outlook: if you think inflation will stay low, Series EE bonds may be better. If you think inflation will rise or stay high, Series I bonds are usually better. Many people buy both to spread the risk.

Frequently Asked Questions

Can I buy savings bonds for someone else?

Yes. Through TreasuryDirect, you can open an account in someone else's name if you have their Social Security number and they give permission. For minors, a parent or guardian manages the account. You can also buy paper bonds through a bank and give them as a gift, though this is less common now.

What if I want to buy more than $10,000 in one year?

The $10,000 annual limit applies only to TreasuryDirect purchases. You can buy additional bonds through a bank or broker, which have no annual cap. However, you will pay a commission on those purchases. Some people split large purchases between TreasuryDirect and a bank to stay under the limit at each.

How long does it take to buy a bond after I open a TreasuryDirect account?

You can buy bonds as soon as your bank account is verified, which usually takes three to five business days after you link it. Once verified, purchases happen the same day you place the order. The bond appears in your account electronically immediately.

Can I sell my savings bonds before they mature?

Savings bonds do not have a maturity date in the traditional sense. You can redeem them anytime after one year, but if you redeem before five years, you lose the last three months of interest. After five years, you get all interest earned. Bonds continue earning interest for 30 years, so there is no penalty for holding them longer.

What if I lose access to my TreasuryDirect account?

Contact TreasuryDirect customer service through treasurydirect.gov. You can reset your password or verify your identity to regain access. Your bonds are safe in the Treasury's system even if you cannot log in. If you forget your login information, the site has a recovery process that takes a few days.