You buy savings bonds directly from the U.S. Treasury, not from banks or brokers

The U.S. Treasury sells savings bonds and other Treasury securities only through TreasuryDirect, a federal website where you open an account, fund it, and purchase bonds electronically. You cannot buy them at a bank, credit union, or brokerage firm — those institutions stopped selling paper savings bonds to individuals in 2011. If a bank or investment firm claims to sell you a savings bond, they are selling you a Treasury security that trades on the secondary market, which is a different product with different terms.

TreasuryDirect is free to use. There are no fees to open an account, buy bonds, or hold them. The only cost is the purchase price of the bond itself.

Key Takeaways

  • TreasuryDirect (treasurydirect.gov) is the only place to buy new savings bonds directly from the U.S. Treasury.
  • You need a Social Security number, a valid email address, and a U.S. bank account to open a TreasuryDirect account.
  • Series EE and Series I bonds are the two types of savings bonds available to individual buyers, and you can purchase them in amounts as small as $25.
  • Bonds are held in electronic form only — there are no paper certificates issued to new buyers.
  • You can buy bonds anytime during the month, and the Treasury issues them on the first business day of the following month.

How to set 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 online access to a U.S. bank account (checking or savings). The Treasury uses your bank account for both funding purchases and receiving redemption payments.

During signup, you create a username and password, answer security questions, and verify your email address. The process takes about 15 minutes. Once your account is active, you can begin purchasing bonds when ready. Your bank account is not charged until you actually buy a bond.

What types of savings bonds you can buy

Series EE bonds are sold at half their face value — you pay $50 for a $100 bond — and earn a fixed interest rate set by the Treasury every six months. The rate applies to all Series EE bonds purchased during that six-month period. Series EE bonds have a 30-year maturity, though you can cash them in after one year (with a penalty if you redeem before five years).

Series I bonds earn an interest rate that combines a fixed rate and an inflation rate. The inflation portion adjusts every six months based on the Consumer Price Index. Series I bonds are sold at face value — you pay $50 for a $50 bond — and also have a 30-year maturity with a one-year holding requirement and a five-year early redemption penalty.

The Treasury also sells Treasury bills, notes, and bonds through TreasuryDirect, but these are not savings bonds. They are sold at auction on a fixed schedule, have different maturity dates (ranging from a few weeks to 30 years), and are purchased in $100 increments. Most individual savers use savings bonds rather than these products because savings bonds have lower minimum purchases and no auction timing to track.

Minimum purchase amounts and limits

The minimum purchase for a savings bond is $25. You can buy in $1 increments above that minimum — for example, $26, $50.50, or $100. There is no maximum purchase per transaction, but the Treasury sets an annual limit on how much you can buy in each type of bond per calendar year. As of 2024, the limit is $10,000 per person per bond type per year (so you could buy up to $10,000 in Series EE and $10,000 in Series I in the same year).

If you have a TreasuryDirect account and also own paper savings bonds from before 2011, those paper bonds are tracked separately and do not count toward your digital purchase limit.

How the purchase and issuance process works

When you buy a bond through TreasuryDirect, you place the order anytime during the calendar month. The Treasury processes all orders placed during that month and issues the bonds on the first business day of the following month. For example, if you buy on March 15, your bond is issued on April 1 and begins earning interest from that date.

The money is withdrawn from your bank account within a few business days of your purchase order. You receive a confirmation number when ready after placing the order, and you can view your bond holdings in your TreasuryDirect account at any time. Bonds are held in electronic form only — you do not receive a physical certificate.

Redeeming or selling your bonds

To cash in a savings bond you own, log into your TreasuryDirect account and request a redemption. The Treasury deposits the money into your bank account within a few business days. You can redeem a bond after holding it for one year. If you redeem before five years, you lose the last three months of interest as a penalty.

You cannot sell a savings bond to another person through TreasuryDirect. If you want to transfer a bond to someone else (such as a gift), you must contact TreasuryDirect customer service to request a transfer, and the recipient must have their own TreasuryDirect account. Alternatively, you can redeem the bond and give the cash to the other person.

Frequently Asked Questions

Can I buy savings bonds for someone else as a gift?

You can purchase a bond in your own TreasuryDirect account and then request a transfer to the recipient's account if they have one. If they do not have a TreasuryDirect account, they can open one for free. Alternatively, you can redeem the bond in your account and give them the cash.

What happens if I forget my TreasuryDirect password?

Click "Forgot Username or Password" on the TreasuryDirect login page. You will be asked to verify your identity using your Social Security number and email address. The Treasury will send you a password reset link to your registered email. If you no longer have access to that email, contact TreasuryDirect customer service at 844-284-2676.

Can I buy savings bonds through my bank or financial advisor?

No. Banks and financial advisors cannot sell you new savings bonds. They may offer Treasury securities that trade on the secondary market, which are different products with different pricing and terms. To buy new savings bonds, you must use TreasuryDirect directly.

Do I pay taxes on savings bond interest?

Yes. Interest earned on savings bonds is subject to federal income tax. You can choose to report the interest each year or wait until you redeem the bond to report all accumulated interest. Some bonds may be exempt from state and local income tax if used for education expenses, but you must meet specific conditions.