You can buy U.S. 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 online platform. You create an account, link a bank account, and buy bonds electronically. There are no fees, no middleman, and you own the bonds outright. The Treasury holds them in an account registered to you, and you can view them anytime online.
If you prefer to work with a financial institution, you can buy savings bonds through most banks and brokerage firms. They charge a fee for the service — typically $25 to $100 per transaction — but some people choose this route because they want their bonds held alongside other investments or prefer working with someone they already know.
Paper savings bonds are no longer sold at banks or post offices. The Treasury stopped issuing paper bonds in 2011 and now sells only electronic bonds through TreasuryDirect or financial institutions.
Key Takeaways
- TreasuryDirect is free, requires only an online account and a bank account, and lets you buy bonds directly from the U.S. Treasury with no fees.
- Banks and brokers can sell you savings bonds but charge a fee, usually $25 to $100 per purchase.
- You need a Social Security number or Individual Taxpayer Identification Number (ITIN) to open a TreasuryDirect account.
- Bonds are issued electronically and held in your account; you cannot buy paper savings bonds anymore.
- You can buy bonds for yourself or as gifts for others, though gift bonds have different rules for who can redeem them.
Setting up a TreasuryDirect account
Go to treasurydirect.gov and click "Open an Account." You will need your Social Security number or ITIN, a valid email address, and a U.S. bank account (checking or savings). The Treasury uses your bank account to debit money when you buy bonds and to deposit money when you sell them.
The account setup takes about 15 minutes. The Treasury will ask you to verify your identity — this usually happens immediately online, but sometimes they mail you a verification code. Once your account is open, you can buy bonds right away. There is no minimum account balance and no monthly fees.
If you do not have internet access or prefer not to use it, you can call TreasuryDirect customer service at 844-284-2676. They cannot sell you bonds over the phone, but they can walk you through the online process or help you troubleshoot account problems.
How much you can buy and when
You can buy up to $10,000 in Series EE bonds per calendar year through TreasuryDirect, and up to $10,000 in Series I bonds per calendar year. The limit resets on January 1. If you want to buy more than $10,000 in either series, you can do so through a bank or broker, but you will pay their fee.
Bonds are issued on the first business day of each month. If you buy a bond on the 15th of the month, it will be issued on the first business day of the following month. The Treasury does not sell bonds on weekends or federal holidays, so plan accordingly if you are buying near a holiday.
You can buy bonds in amounts as small as $25. There is no upper limit per purchase, only the annual limit per series.
Buying bonds as gifts
You can buy a savings bond as a gift through TreasuryDirect. The bond is registered in the recipient's name, and you pay for it from your bank account. The recipient does not need to have a TreasuryDirect account or do anything to receive the gift — the bond simply appears in their account once they set one up.
Gift bonds count toward the recipient's annual purchase limit, not yours. If you buy a $5,000 Series EE bond as a gift for your child, that $5,000 counts against their $10,000 annual limit. This matters if the recipient plans to buy their own bonds that year.
You can also buy bonds in your own name and later transfer them to someone else, but this is more complicated and involves paperwork. Buying them as a gift from the start is simpler.
Buying through a bank or broker
Most major banks and brokerage firms sell savings bonds. Call your bank or log into your brokerage account and ask whether they offer them. If they do, they will walk you through the purchase process. The bond will be held in your investment account alongside your other holdings.
Banks and brokers typically charge a flat fee per purchase or a percentage of the bond amount. Ask what the fee is before you buy. For small purchases, the fee can eat into your return, so compare it against buying through TreasuryDirect for free.
If you already have a relationship with a financial advisor or broker and want all your investments in one place, buying through them may be worth the fee. If you are just starting out and want to keep costs low, TreasuryDirect is the better choice.
What happens after you buy
Once your bond is issued, you own it. You can view it in your TreasuryDirect account anytime and see its current value. Series EE bonds earn interest monthly, and Series I bonds earn interest monthly as well. The interest is added to the bond's value automatically — you do not receive a check or deposit.
You can sell your bond back to the Treasury anytime after you own it for one month. If you sell before five years have passed, you lose the last three months of interest as a penalty. After five years, there is no penalty. Most people hold savings bonds for much longer than five years, so this penalty rarely matters in practice.
When you sell a bond through TreasuryDirect, the money goes back to your linked bank account within a few business days. If you bought through a bank or broker, you sell through them the same way.
Tax reporting and considerations
Interest earned on savings bonds is subject to federal income tax, but not state or local income tax. You do not have to report the interest every year — you can wait until you cash the bond or it reaches final maturity, then report all the interest at once. This is called deferring the tax.
If you use a Series EE or Series I bond to pay for may have access to education expenses, you may be able to exclude some or all of the interest from your federal income tax. This is called the Education Savings Bond Program. The rules are specific: the bond must be registered in your name (not your child's), you must be at least 24 years old when you buy it, and the expenses must be for tuition and fees at an accredited school. Talk to a tax professional if you think this applies to you.
When you buy a bond, the Treasury does not withhold taxes. You pay the tax when you file your return for the year you cash the bond.
Frequently Asked Questions
Do I need a bank account to buy bonds through TreasuryDirect?
Yes. TreasuryDirect requires a U.S. bank account (checking or savings) to link to your account. They use it to debit money when you buy and to deposit money when you sell. You cannot buy bonds with a credit card or debit card.
Can I buy savings bonds for a minor?
Yes, but the bond must be registered in the minor's name and Social Security number. You will need to set up a TreasuryDirect account using their information. A parent or legal guardian can manage the account on their behalf until they reach the age of majority in their state.
What is the difference between buying through TreasuryDirect and a bank?
TreasuryDirect is free and direct from the Treasury. Banks charge a fee (usually $25 to $100) but may offer convenience if you already bank with them. The bonds themselves are identical; the only difference is cost and where they are held.
How long does it take to buy a bond after I open my TreasuryDirect account?
You can buy a bond immediately after your account is verified, which usually happens within minutes. The bond itself is issued on the first business day of the following month, but you own it from the moment you purchase it.
Can I change my mind after I buy a bond?
You can sell a bond back to the Treasury anytime after holding it for one month. If you sell before five years, you lose the last three months of interest. After five years, you can sell with no penalty. There is no way to cancel a purchase before the bond is issued.