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

You do not go through a bank or broker. You create an account at TreasuryDirect.gov, link a bank account, and purchase bonds in amounts from $25 to $10,000 per bond type per calendar year. The entire process takes about 15 minutes once your account is set up. Bonds are held electronically — you receive no paper certificate unless you request one after purchase.

The two types available to individuals are Series EE bonds and Series I bonds. EE bonds earn a fixed rate set by the Treasury and may provide for 30 years. I bonds earn a combined rate of a fixed portion plus an inflation rate that changes every six months. Both require you to hold them at least one year, and both impose a penalty if you cash them before five years — you lose the last three months of interest.

Key Takeaways

  • TreasuryDirect.gov is the only place to buy new savings bonds directly from the government, and you must create an online account with a Social Security number and valid address.
  • You can buy up to $10,000 of each bond type (EE and I) per calendar year through TreasuryDirect, plus an additional $5,000 of I bonds if you use your tax refund.
  • Bonds are purchased in electronic form and held in your TreasuryDirect account; you do not receive paper unless you request it after the purchase is complete.
  • Both EE and I bonds lock in your money for at least one year, and cashing them before five years costs you the last three months of interest as a penalty.

Setting up your TreasuryDirect account

Go to TreasuryDirect.gov and click "Open an Account." You will need a Social Security number, a valid U.S. address, and an email address. The site will ask you to create a username and password, then verify your identity by answering security questions based on your credit history. This verification is instant.

Once your account is created, you must link a bank account for purchases and redemptions. You provide your routing number and account number. The Treasury will make two small test deposits (usually under $1 each) to that account within one to two business days, and you must log back in and confirm the amounts to complete the link. Only then can you buy bonds.

Choosing between EE and I bonds

Series EE bonds pay a fixed interest rate that the Treasury announces twice per year (in May and November). That rate applies to all bonds purchased during that six-month period and stays the same for the life of the bond. The current rate is posted on TreasuryDirect.gov. EE bonds are predictable — you know exactly what you will earn — but the rate is typically lower than inflation.

Series I bonds combine a fixed rate (also announced twice yearly) with an inflation rate that adjusts every six months based on the Consumer Price Index. The total rate changes twice per year, so your earnings keep pace with inflation. The downside is that you cannot predict future earnings. I bonds are better if you are concerned about inflation eroding your savings; EE bonds are simpler if you want to know your exact return upfront.

Purchase limits and timing

You can buy up to $10,000 of Series EE bonds and up to $10,000 of Series I bonds per calendar year through TreasuryDirect. That is $20,000 total across both types. Additionally, if you receive a federal tax refund, you can purchase up to $5,000 of I bonds using that refund by requesting paper bonds on your tax return — this is a separate limit and does not count against your $10,000 annual cap.

Bonds are issued on the first business day of each month. If you purchase on the 15th of a month, your bond will be issued on the first business day of the following month, and interest begins accruing from that issue date. The purchase price is always the face value — a $100 EE bond costs $100, not a discount.

What happens after you buy

Your bonds appear in your TreasuryDirect account immediately after purchase, though the official issue date is the first business day of the next month. You can view your current balance, interest earned, and maturity date by logging in anytime. Interest is added to your account balance monthly, but you do not receive it as cash unless you redeem the bond.

You can redeem (cash in) a bond anytime after one year by logging into TreasuryDirect and requesting a transfer to your linked bank account. The money arrives within one to three business days. If you redeem before five years have passed, you forfeit the last three months of interest as a penalty. After five years, there is no penalty, though the bond continues earning interest until maturity (30 years for EE bonds, no maturity date for I bonds).

Taxes on savings bond interest

Interest earned on savings bonds is subject to federal income tax but not state or local income tax. You have two options: report the interest each year as it accrues (even though you have not received the cash), or defer all taxes until you redeem the bond or it matures. Most people choose to defer because it simplifies record-keeping.

When you redeem a bond, the Treasury sends you a Form 1099-INT showing the total interest earned. You report this on your federal tax return for that year. If you held the bond for many years, all the accumulated interest is taxable in the year you cash it in, which can push you into a higher tax bracket. Some people redeem bonds in lower-income years to manage this, or redeem them gradually across multiple years.

If you lose access to your account

If you forget your TreasuryDirect password, you can reset it through the website using your email and security questions. If you lose access to your email or cannot answer the security questions, contact the TreasuryDirect Customer Service Bureau by phone at 844-284-2676 (toll-free) or by mail. They can verify your identity and restore access, though the process takes longer than a password reset.

If you die, your bonds become part of your estate. The person handling your estate (executor or administrator) must contact TreasuryDirect with a death certificate and proof of their authority to manage your assets. Bonds can then be redeemed or transferred to beneficiaries according to your will or state law.

Frequently Asked Questions

Can I buy savings bonds for someone else?

No. You can only buy bonds in your own name using your Social Security number. You cannot purchase them as a gift for a child or another adult. However, you can gift the money to someone and they can buy bonds themselves if they have a TreasuryDirect account.

What if I need the money before one year is up?

You cannot redeem a bond before one year has passed — the system will not allow it. If you need cash urgently, you must use other savings. Bonds are meant for money you do not plan to touch for at least a year.

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

No. You can buy bonds in any amount from $25 to $10,000 per purchase. You could buy a single $47 bond if you wanted to. The minimum is $25, and you can add cents (like $100.50), though most people stick to whole dollar amounts.

Can I change my mind after I buy a bond?

No. Once purchased, a bond cannot be cancelled or returned. You are committed to holding it at least one year. If you realize you made a mistake, your only option is to wait one year and then redeem it, accepting the three-month interest penalty if you cash it before five years.

What if TreasuryDirect goes down or I cannot access the website?

Your bonds are held by the U.S. Treasury, not by the website. If TreasuryDirect has technical problems, your bonds are safe and still earning interest. You simply cannot view them or make transactions until the site is back up. For extended outages, you can call customer service for information about your account.