Where to Buy Savings Bonds

You can buy U.S. savings bonds in two places: through TreasuryDirect, which is the official U.S. Department of the Treasury website, or through your bank or broker. TreasuryDirect is the direct route — you buy straight from the government with no middleman. Your bank or broker will charge a fee, but some people prefer working with someone they already know.

TreasuryDirect is free to use and holds your bonds in an online account. You can buy bonds there any day the financial markets are open. Banks and brokers have their own hours and may require a minimum purchase, so call ahead if you want to go that route.

Key Takeaways

  • TreasuryDirect is the free, direct way to buy savings bonds from the U.S. Department of the Treasury online.
  • You need a Social Security number, a valid email address, and a bank account to set up a TreasuryDirect account.
  • Series EE bonds and Series I bonds are the two types you can currently buy; Series I bonds protect against inflation.
  • You can buy as little as $25 per bond, and the purchase happens when ready once you confirm it in your account.
  • Bonds are held electronically in your TreasuryDirect account, not mailed to you as paper certificates.

Setting Up a TreasuryDirect Account

Start by going to treasurydirect.gov and clicking "Open an Account." You will need your Social Security number, a valid email address, and a U.S. bank account (checking or savings). The site will ask you to create a username and password.

After you submit your information, the Treasury sends a confirmation email. Click the link in that email to verify your address. Then you link your bank account — this is how the Treasury pulls money for your purchase and how they send you money if you cash the bond early. The whole process takes about 10 minutes.

Once your account is live, you can buy bonds when ready. You do not have to wait for anything to arrive in the mail — the bonds exist in your online account right away.

Choosing Between Series EE and Series I Bonds

Series EE bonds have a fixed interest rate that stays the same for the life of the bond. The rate changes every six months, but once you buy your bond, your rate does not change. Series EE bonds take 20 years to reach face value if you buy them at the standard 50 percent discount (meaning a $100 bond costs you $50).

Series I bonds have an interest rate made up of two parts: a fixed rate plus an inflation rate. The inflation part changes every six months based on the Consumer Price Index. If inflation goes up, your interest rate goes up. If inflation goes down, your rate goes down, but it will never go below the fixed portion. Series I bonds are useful if you are worried about inflation eating into your savings.

Both types require you to hold the bond for at least one year. If you cash them out before five years, you lose the last three months of interest. After five years, you can cash them with no penalty.

How Much to Buy and Minimum Amounts

The minimum purchase through TreasuryDirect is $25 per bond. You can buy in $25 increments up to $10,000 per bond type per calendar year. That means you can buy up to $10,000 in Series EE bonds and up to $10,000 in Series I bonds in the same year.

If you want to buy more than $10,000 of one type in a single year, you can do it through a bank or broker, but you will pay a fee. For most people, the $10,000 annual limit through TreasuryDirect is plenty.

You can also buy paper Series EE bonds through your tax refund — up to $5,000 of your refund can go toward paper bonds. This is a separate limit from your $10,000 online limit, so you could theoretically buy $15,000 in Series EE bonds in one year if you used both methods.

Completing Your Purchase

Log into your TreasuryDirect account and click "BuyDirect." Choose the bond type (Series EE or Series I), enter the amount you want to spend, and review the details. The site shows you the interest rate, the purchase price, and when the bond matures.

Click "Buy" and confirm your purchase. The money comes out of your linked bank account within one to two business days. Your bond appears in your account when ready, even though the money is still processing.

You will receive a confirmation email with your bond details. Keep this email or take a screenshot. You do not get a paper certificate — your bond exists only in your TreasuryDirect account.

Managing Your Bonds After Purchase

Log into TreasuryDirect anytime to see your bonds, their current value, and their interest earned. You can see the exact maturity date and the interest rate locked in for Series EE bonds, or the current combined rate for Series I bonds.

If you need to cash a bond before it matures, you can do it through your TreasuryDirect account. The money goes back to your linked bank account. Remember that bonds under one year old cannot be cashed, and bonds cashed before five years old lose three months of interest.

You can also transfer bonds to another person's TreasuryDirect account if you want to give them as a gift, though this is less common. The process is done entirely online through your account settings.

Buying Bonds Through a Bank or Broker

If you prefer not to use TreasuryDirect, you can walk into your bank or call a broker and ask to buy savings bonds. They will charge you a fee — typically $25 to $50 per transaction — and may have a minimum purchase amount. The bonds themselves work the same way, but you will receive a paper certificate in the mail instead of an online account.

Paper bonds are harder to track and harder to cash. If you lose the certificate, you have to file a claim with the Treasury to replace it. Most financial advisors recommend TreasuryDirect for this reason: it is free, it is when ready, and your bonds are always safe in your online account.

Frequently Asked Questions

Can I buy savings bonds for someone else?

Yes. You can buy a bond and register it in someone else's name through TreasuryDirect. During purchase, you enter their Social Security number and name. They will not have access to the account unless you give them the login information, so you remain the owner until you transfer it to them.

What happens if I need the money before the bond matures?

You can cash the bond anytime after one year through your TreasuryDirect account. If you cash it before five years, you lose the last three months of interest. After five years, there is no penalty. The money goes to your bank account in one to two business days.

Do I pay taxes on savings bond interest?

Yes, but you can delay paying federal income tax until you cash the bond or it reaches final maturity. Some people use this to their advantage by cashing bonds in a year when their income is lower. State and local taxes may explore depending on where you live.

Can I change my mind after I buy a bond?

No. Once you confirm a purchase in TreasuryDirect, the transaction is final. You cannot cancel or reverse it. You can only cash the bond, and only after holding it for at least one year.

What if TreasuryDirect is down or I cannot log in?

TreasuryDirect is maintained by the U.S. Department of the Treasury. If you cannot log in, call their customer service line at 1-844-284-2676. They can help you reset your password or troubleshoot account issues. Your bonds are safe even if you cannot access your account temporarily.