Where to buy savings bonds

You can buy U.S. savings bonds directly from the U.S. Department of the Treasury through TreasuryDirect, their online platform. This is the only place to purchase new savings bonds — you cannot buy them from banks, brokers, or other financial institutions. TreasuryDirect lets you buy, hold, and manage bonds entirely online without paying any fees or commissions.

If you prefer not to use the internet, you can still buy Series I bonds and Series EE bonds through your employer's payroll savings plan, if your company offers one. Some employers allow you to set aside money from each paycheck to purchase bonds automatically. This option requires no TreasuryDirect account, though you will eventually need one to manage the bonds after they are issued.

Key Takeaways

  • TreasuryDirect is the official Treasury website where you create an account and buy savings bonds with no fees.
  • You need a Social Security number, valid email address, and a U.S. bank account to set up TreasuryDirect.
  • Bonds are issued on the first day of each month, so the timing of your purchase affects when your bond begins earning interest.
  • You can buy bonds as gifts for others, but the recipient must have their own TreasuryDirect account to receive them.
  • There are annual purchase limits: $10,000 per person per calendar year for electronic bonds, plus an additional $5,000 if you use your tax refund.

Setting up a TreasuryDirect account

Go to TreasuryDirect.gov and click "Open an Account." You will need your Social Security number, a valid email address, and a U.S. bank account (checking or savings). The Treasury uses your bank account to withdraw money when you buy bonds and to deposit interest payments or redemption proceeds.

During registration, you will create a username and password, set up security questions, and link your bank account. The Treasury verifies your identity by asking questions based on your credit history — these are the same types of questions used by other financial institutions. The entire process takes about 15 minutes, and your account is usually active within one business day.

Once your account is open, you can buy bonds immediately. You do not need to wait for anything to arrive in the mail — everything happens online.

Buying bonds through TreasuryDirect

Log into your TreasuryDirect account and select "BuyDirect." Choose the type of bond you want (Series I or Series EE), enter the amount, and confirm your purchase. The money is withdrawn from your linked bank account, usually within one to two business days. Your bond is issued on the first day of the following month, regardless of when you place your order during the month.

For example, if you buy a bond on March 15, your bond will be issued on April 1 and will begin earning interest on that date. If you buy on April 1, your bond is still issued on May 1. This timing matters because you do not earn interest between the day you purchase and the day the bond is issued.

After your bond is issued, it appears in your TreasuryDirect account under "ManageDirect." You can view the current value, interest earned, and maturity date anytime. You do not receive a physical certificate — your bond exists only as an electronic record.

Buying bonds through payroll deduction

If your employer participates in the savings bond program, you can authorize payroll deductions to purchase bonds automatically. Ask your human resources or payroll department whether your company offers this option and request an enrollment form. You specify how much to deduct from each paycheck, and your employer forwards the money to the Treasury.

Bonds purchased through payroll are issued monthly, just like bonds bought through TreasuryDirect. Your employer will provide you with documentation of each purchase. You will eventually need to set up a TreasuryDirect account to manage these bonds online, but you can do this after they are issued.

Annual purchase limits and tax refund bonds

You can buy up to $10,000 in electronic savings bonds per calendar year through TreasuryDirect (either Series I or Series EE, or a combination). This limit resets on January 1 each year. If you reach your limit before the year ends, you cannot buy more electronic bonds until the next calendar year.

There is an additional way to buy bonds beyond the $10,000 limit: you can use your federal tax refund to purchase up to $5,000 in Series I bonds. To do this, file your tax return through the IRS and request that part or all of your refund be used to buy bonds. The IRS sends the bond purchase to the Treasury, and the bonds are issued in your name. This $5,000 limit is separate from your regular $10,000 annual limit, so you could theoretically buy $15,000 in bonds in a single year ($10,000 through TreasuryDirect and $5,000 through your tax refund).

Buying bonds as gifts

You can purchase savings bonds as gifts through TreasuryDirect, but the process requires the recipient to have their own TreasuryDirect account. You cannot simply buy a bond and give it to someone without an account. The recipient must set up their account first, then you can buy a bond and designate it as a gift to them.

When you buy a gift bond, the money comes from your bank account, but the bond is issued in the recipient's name and appears in their TreasuryDirect account. The recipient owns the bond from the moment it is issued and can view it, redeem it, or manage it as they wish. Gift bonds count toward your annual purchase limit, not the recipient's.

What happens after you buy

Once your bond is issued, it earns interest automatically. Series I bonds earn interest based on inflation rates set by the Treasury every six months. Series EE bonds earn a fixed rate for the life of the bond. You do not need to do anything — the interest accrues in your TreasuryDirect account.

You can check your bond's current value, total interest earned, and maturity date anytime by logging into TreasuryDirect. Interest is paid when you redeem the bond or when the bond reaches final maturity. You can redeem (cash in) your bond anytime after one year, though you will lose the last three months of interest if you redeem before five years have passed.

Frequently Asked Questions

Can I buy savings bonds without a TreasuryDirect account?

You can buy bonds through your employer's payroll savings plan without initially having a TreasuryDirect account. However, you will need to create one eventually to manage the bonds online. You cannot buy bonds from banks, brokers, or any other source — TreasuryDirect and payroll programs are the only official channels.

What if I forget my TreasuryDirect password?

Click "Forgot Username or Password" on the TreasuryDirect login page. You will answer security questions to verify your identity, and the Treasury will send a password reset link to your email address. If you cannot answer the security questions, you can call TreasuryDirect customer service at 844-284-2676 to verify your identity by phone.

Do I pay taxes on savings bond interest?

Yes. Interest on savings bonds is subject to federal income tax, though it is exempt from state and local taxes. You can choose to report the interest each year as it accrues, or you can wait and report all the interest when you redeem the bond. Most people wait until redemption. You will receive a Form 1099-INT from the Treasury showing the interest earned.

Can I change my mind after I buy a bond?

No. Once you purchase a bond through TreasuryDirect, the transaction is final. The money is withdrawn from your bank account, and the bond will be issued on the first day of the following month. You cannot cancel the purchase or get a refund. You can only redeem the bond after it has been issued and you have held it for at least one year.

What if my bank account information changes?

Log into TreasuryDirect and update your bank account information in your account settings. This ensures future interest payments and redemption proceeds go to the correct account. Changes take effect within one to two business days. If you have a pending bond purchase, make sure to update your account before the bond is issued on the first of the month.