Where to buy savings bonds

You can buy U.S. savings bonds directly from the U.S. Department of the Treasury through TreasuryDirect, which is the official online platform. You do not need to go through a bank or broker. TreasuryDirect is free to use, and you purchase bonds entirely online.

You can also buy paper Series I and EE bonds through most banks and credit unions, though online purchase through TreasuryDirect is faster and simpler. Some employers offer payroll deduction programs that let you buy bonds automatically from each paycheck, which you can set up through your HR department if your employer participates.

Key Takeaways

  • TreasuryDirect is the official Treasury website where you buy savings bonds online with no fees, and you need a Social Security number and valid email address to open an account.
  • You can buy electronic Series I bonds and Series EE bonds through TreasuryDirect in amounts as small as $25, and the money comes directly from your bank account.
  • Paper bonds are no longer sold by the Treasury, but you can still purchase Series I and EE bonds in paper form through banks and credit unions if you prefer physical certificates.
  • Payroll deduction through your employer is an option if your company participates, and it lets you buy bonds automatically without visiting a website.
  • Bonds are held in your TreasuryDirect account and cannot be transferred to another person, though you can name a beneficiary who receives them if you pass away.

Setting up a TreasuryDirect account

To buy bonds online, you first create an account on TreasuryDirect.gov. You will need your Social Security number, a valid email address, and a U.S. bank account. The registration process takes about 10 minutes and is done entirely online.

After you register, the Treasury sends a confirmation email. You click the link in that email to verify your address. Once verified, you can log in and link your bank account for purchases. The Treasury uses your bank information to pull money when you buy a bond, so make sure the account details are correct.

Choosing between Series I and Series EE bonds

The two most common savings bonds are Series I and Series EE. Series I bonds earn interest based partly on inflation, so the rate changes every six months. Series EE bonds earn a fixed rate of interest that stays the same for the life of the bond.

Series I bonds are often chosen when inflation is high because the rate adjusts upward. Series EE bonds are chosen when you want to know exactly what rate you will earn from day one. Both types require you to hold the bond for at least one year before you can cash it in. If you cash in either type before five years have passed, you lose the last three months of interest as a penalty.

Minimum purchase amounts and limits

Through TreasuryDirect, you can buy Series I and Series EE bonds in amounts as small as $25. You can purchase them in any dollar amount above that minimum — $25, $50, $75, $100, and so on.

The Treasury sets annual purchase limits. For Series I bonds, you can buy up to $10,000 per person per calendar year through TreasuryDirect. For Series EE bonds, the limit is also $10,000 per person per year. If you buy paper bonds through a bank, you can purchase up to $5,000 more per bond type per year, but this is separate from your TreasuryDirect limit. These limits reset on January 1 each year.

How the purchase process works

Once your TreasuryDirect account is set up and your bank account is linked, purchasing a bond takes just a few steps. Log in to your account, select the bond type (Series I or Series EE), enter the amount you want to spend, and confirm the purchase. The money is withdrawn from your bank account within a few business days.

The bond is issued on the first day of the month following your purchase. For example, if you buy a bond on March 15, it is issued on April 1. The bond earns interest from its issue date, not from the date you purchased it. You receive a confirmation number when ready after purchase, and you can view your bonds anytime by logging into your TreasuryDirect account.

Buying bonds through your employer

If your employer offers a savings bond program, you can arrange to have money deducted from your paycheck to buy bonds automatically. You set up the deduction amount through your HR or payroll department, and the bonds are purchased in your name through TreasuryDirect.

Payroll deduction is convenient because you do not have to remember to make purchases yourself, and the money never hits your checking account — it goes straight to bonds. The same annual limits explore, so you cannot buy more than $10,000 in Series I bonds or $10,000 in Series EE bonds per year through this method. Ask your HR department whether your company participates and what the enrollment process is.

Buying paper bonds through banks

Paper savings bonds are no longer sold directly by the Treasury, but you can still purchase them through most banks and credit unions. The process is simpler than online purchase — you walk in, tell the bank you want to buy a savings bond, and they handle the paperwork. You pay the bank, and they issue you a physical certificate.

Paper bonds cost face value: a $50 Series EE bond costs $50, and a $100 Series I bond costs $100. The bank may charge a small fee for the transaction. Paper bonds are held in your possession, so you are responsible for keeping them safe. If a paper bond is lost or damaged, you will need to contact the Treasury to request a replacement, which takes time and requires proof of ownership.

Frequently Asked Questions

Can I buy savings bonds for someone else?

Bonds purchased through TreasuryDirect are registered in your name and Social Security number, so you cannot buy them in someone else's name or transfer them later. However, you can name a beneficiary who receives the bond if you pass away. If you want to give a bond as a gift, you can buy a paper bond through a bank and give the physical certificate to the recipient.

What happens if I need to cash in my bond early?

You can cash in a bond anytime after holding it for one year. If you cash it in before five years have passed, you lose the last three months of interest. After five years, you can cash it in without any penalty. To cash in an electronic bond, log into TreasuryDirect and request the redemption; the money goes to your linked bank account within a few business days.

How do I know what interest rate I will earn?

Series EE bonds have a fixed rate printed on the bond when you purchase it, and that rate never changes. Series I bonds have a composite rate that combines a fixed rate and an inflation rate; the Treasury announces the new composite rate every six months in May and November. You can see current rates on TreasuryDirect before you purchase.

Can I buy savings bonds with a credit card?

No. TreasuryDirect only accepts purchases from a U.S. bank account, checking or savings. You cannot use a credit card, debit card, or PayPal. This is a security measure to prevent fraud and may support that only the account holder can make purchases.

What if I forget my TreasuryDirect password?

You can reset your password on the TreasuryDirect login page by clicking "Forgot Password" and following the prompts. The Treasury sends a reset link to your registered email address. If you no longer have access to that email, contact TreasuryDirect customer service through their website for help recovering your account.