You can buy 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 immediately. Paper bonds are no longer sold — all new purchases are digital.

If you prefer to work with a bank or brokerage firm, you can buy savings bonds through them instead. They charge a fee for the service, but some people choose this route if they already have an account there or want a person to talk to. The bond itself costs the same either way.

Key Takeaways

  • TreasuryDirect is free and the most direct way to buy savings bonds; you need an online account, a Social Security number or tax ID, and a U.S. bank account.
  • Series EE bonds and Series I bonds are the two types currently sold; Series I bonds adjust for inflation, while Series EE bonds earn a fixed rate.
  • You can buy as little as $25 per bond through TreasuryDirect, and there are annual purchase limits ($10,000 per person per calendar year for each series through TreasuryDirect).
  • Bonds bought through a bank or broker cost more because of fees, but may be easier if you already have an account there.
  • Savings bonds take several business days to appear in your TreasuryDirect account after purchase.

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, a U.S. bank account (checking or savings), and a valid email address. The Treasury will verify your identity using information from your credit file, so have your driver's license or state ID ready.

Once your account is open, you link your bank account for purchases and redemptions. The Treasury uses this account to debit money when you buy and to deposit money when you cash bonds in. The whole setup takes about 15 minutes.

Buying bonds through TreasuryDirect

After you log in, select "Buy Direct" and choose which type of bond you want: Series EE or Series I. You will see the current rate for each. Enter the dollar amount you want to spend — the minimum is $25 — and confirm the purchase. The money leaves your bank account within one to three business days, and the bond appears in your account shortly after.

There is an annual purchase limit of $10,000 per person per calendar year for each series. This means you can buy up to $10,000 in Series EE bonds and $10,000 in Series I bonds in the same year. If you are buying bonds for a child or as a gift, those purchases count toward the recipient's limit, not yours.

Buying bonds through a bank or broker

Most large banks and brokerage firms sell savings bonds. Call your bank or log into your brokerage account and ask about purchasing savings bonds. They will walk you through their process, which usually involves filling out a form and authorizing a debit from your account.

Banks and brokers typically charge a fee per bond or a percentage of the purchase price. This fee is separate from the bond's cost, so a $100 bond might cost you $102 or $105 depending on the institution. The bond itself earns the same rate whether you buy it through the Treasury or through a bank — the fee is just the price of using their service.

What happens after you buy

Bonds purchased through TreasuryDirect appear in your account as digital records. You do not receive a paper certificate. You can view your bonds anytime by logging in, and you can see how much interest they have earned. The interest compounds semiannually — meaning the Treasury adds interest to your bond twice a year, and that interest then earns interest itself.

If you buy through a bank or broker, they will hold the bonds in your account there. You can see them in your account statement, but the bank or broker is the custodian. If you want to move them later, you may have to pay a transfer fee.

Redemption and holding periods

You can cash in a savings bond anytime after you own it, but there is a penalty if you redeem it before five years have passed. If you cash it in before five years, you lose the last three months of interest. After five years, you can redeem without penalty, though you will still lose the last three months of interest if you redeem before the bond reaches its final maturity date.

Bonds held through TreasuryDirect can be redeemed online; the money goes back to your linked bank account within one to three business days. Bonds held through a bank or broker are redeemed through that institution.

Tax considerations

Interest earned on savings bonds is subject to federal income tax, but not state or local income tax. You can choose to report the interest each year as it accrues, or you can wait and report it all when you redeem the bond. Most people wait until redemption because it is simpler. When you redeem, the Treasury will send you a Form 1099-INT showing how much interest you earned.

If you use Series EE or Series I bonds to pay for may have access to education expenses, you may be able to exclude some or all of the interest from your taxable income. This is called the Education Savings Bond Program. The rules are specific — the bond must be issued in your name (not your child's), you must be at least 24 years old when you buy it, and the education expenses must be paid in the same year you redeem. Talk to a tax professional if you think this applies to you.

Frequently Asked Questions

Can I buy savings bonds as a gift?

Yes. Through TreasuryDirect, you can buy a bond and register it in someone else's name as a gift. You will need their Social Security number. The bond counts toward their annual purchase limit, not yours. If you buy through a bank or broker, ask them about their gift process.

What is the difference between Series EE and Series I bonds?

Series EE bonds earn a fixed interest rate set by the Treasury and do not change. Series I bonds earn a rate that adjusts every six months based on inflation. If inflation is high, Series I bonds earn more; if inflation is low, they earn less (but never below zero). Which is better depends on what you think inflation will do.

How long does it take to buy a bond through TreasuryDirect?

The purchase itself is instant, but the bond does not appear in your account right away. Money leaves your bank account within one to three business days, and the bond shows up in your TreasuryDirect account a few days after that. Plan for up to a week from purchase to when you can see it.

Can I buy savings bonds for a child?

Yes, but the child must have a Social Security number and a TreasuryDirect account in their name. You would set up the account as the parent or guardian, and the bond would be registered to the child. The purchase counts toward the child's annual limit.

What if I lose access to my TreasuryDirect account?

Contact the Treasury's customer service at 844-284-2676. They can help you regain access or recover your account. Your bonds are safe — they are held by the federal government, not by your account login. Even if you cannot access your account temporarily, your bonds still exist and earn interest.