Savings Bonds: About — TreasuryDirect (2024)

Savings Bonds: About — TreasuryDirect (1)

When you buy a U.S. savings bond, you lend money to the U.S. government.

In turn, the government agrees to pay that much money back later - plus additional money (interest).

U. S. savings bonds are

Savings Bonds: About — TreasuryDirect (2)


Buy once. Earn interest for up to 30 years.

Savings Bonds: About — TreasuryDirect (3)


Backed by the full faith and credit of the U.S. government.

Savings Bonds: About — TreasuryDirect (4)


Buy them for as little as $25.

You can buy 2 types of U. S. savings bonds

EE Bonds

Guaranteed to double in value in 20 years

Earn a fixed rate of interest

Current Rate: 2.70%

For EE bonds issued in November 1, 2023 to April 30, 2024

Electronic only – keep them safe in your TreasuryDirect account

Buy for any amount from $25 up to $10,000.

Maximum purchase each calendar year: $10,000.

Can cash in after 1 year. (But if you cash before 5 years, you lose 3 months of interest.)

More about EE bonds

(Note: Older EE bonds may be different from ones we sell today.)

I Bonds

Protect against inflation. The interest rate on a particular I bond changes every 6 months, based on inflation.

Current Rate: 5.27%

This includes a fixed rate of 1.30%

For I bonds issued November 1, 2023 to April 30, 2024

Primarily electronic – keep them safe in your TreasuryDirect account (minimum amount $25)

You can choose to use all or part of your IRS tax refund to buy paper I bonds (minimum amount $50)

Maximum purchase each calendar year: $10,000 in electronic I bonds + $5,000 in paper I bonds

Can cash in after 1 year. (But if you cash before 5 years, you lose 3 months of interest.)

Interest rate is calculated from a fixed rate and the inflation rate.

More about I bonds

You may have an older bond

HH Bonds

We stopped selling HH savings bonds in 2004

But they have a 20-year life. So, if you have one, you may still be getting interest on it.

More about H/HH bonds

Other historical bonds

Since 1935, we've offered many bond series, each with its own rates and terms.

Some even funded special causes — for the Postal Service, the Armed Forces, and others.

More about historical and retired bond series Cashing in (redeeming) an old paper bond

Financial Institutions:

Help Customers Cash In Their Savings Bonds

View special instructions on how to cash in paper Savings Bonds that customers may bring in to your bank.

Savings Bonds: About — TreasuryDirect (5)

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Savings Bonds: About — TreasuryDirect (2024)


What are the disadvantages of TreasuryDirect? ›

Securities purchased through TreasuryDirect cannot be sold in the secondary market before they mature. This lack of liquidity could be a disadvantage for investors who may need to access their investment capital before the securities' maturity.

How much is a $100 series EE bond worth after 30 years? ›

How to get the most value from your savings bonds
Face ValuePurchase Amount30-Year Value (Purchased May 1990)
$50 Bond$100$207.36
$100 Bond$200$414.72
$500 Bond$400$1,036.80
$1,000 Bond$800$2,073.60

Are TreasuryDirect bonds a good investment? ›

Treasury bonds can be a good investment for those looking for safety and a fixed rate of interest that's paid semiannually until the bond's maturity.

What is the downside of Treasury I bonds? ›

Variable interest rates are a risk you can't discount when you buy an I bond, and it's not like you can just sell the bond when the rate falls. You're locked in for the first year, unable to sell at all. Even after that, there's a penalty of three months' interest if you sell before five years.

Is it better to buy treasuries from broker or TreasuryDirect? ›

There are several ways to buy Treasuries. For many people, TreasuryDirect is a good option; however, retirement savers and investors who already have brokerage accounts are often better off buying bonds on the secondary market or with exchange-traded funds (ETFs).

Should I buy series EE or series I savings bonds? ›

Bottom line. I bonds, with their inflation-adjusted return, safeguard the investor's purchasing power during periods of high inflation. On the other hand, EE Bonds offer predictable returns with a fixed-interest rate and a guaranteed doubling of value if held for 20 years.

How much is a $50 Patriot bond worth after 20 years? ›

After 20 years, the Patriot Bond is guaranteed to be worth at least face value. So a $50 Patriot Bond, which was bought for $25, will be worth at least $50 after 20 years. It can continue to accrue interest for as many as 10 more years after that.

Do EE bonds really double in 20 years? ›

EE bonds you buy now have a fixed interest rate that you know when you buy the bond. That rate remains the same for at least the first 20 years. It may change after that for the last 10 of its 30 years. We guarantee that the value of your new EE bond at 20 years will be double what you paid for it.

How long does it take for a $100.00 bond to mature? ›

U.S. Savings Bonds mature after 20 or 30 years, depending on the type of bond: Series EE bonds mature after 20 years. They are sold at half their face value and are worth their full value at maturity. Series I bonds are sold at face value and mature after 30 years.

Are I bonds better than CDs? ›

If you're investing for the long term, a U.S. savings bond is a good choice. The Series I savings bond has a variable rate that can give the investor the benefit of future interest rate increases. If you're saving for the short term, a CD offers greater flexibility than a savings bond.

Which is better Treasury bills or bonds? ›

Compared with Treasury notes and bills, Treasury bonds usually pay the highest interest rates because investors want more money to put aside for the longer term. For the same reason, their prices, when issued, go up and down more than the others.

What is the difference between a savings bond and a Treasury bond? ›

Finally, savings bonds can't be traded or sold between individuals (no secondary market) and must be redeemed through the government itself. By comparison, Treasury bonds, municipal bonds, and corporate bonds are much more liquid; all three types can be traded on a secondary market before maturity.

What happens to I bonds if inflation goes down? ›

If inflation runs hotter, the rate can go up. If inflation cools off, the rate can go down. The fixed rate portion of an I Bond remains with the life of the bond. The fixed rate is 1.3% for I Bonds issued from November 2023 through April.

Can you loss money on I bonds? ›

“With I bonds, your principal is protected and safe. However, if you cash the bond out before five years, then you will lose up to the last three months of accrued interest.

How do you avoid tax on Treasury bonds? ›

You can skip paying taxes on interest earned with Series EE and Series I savings bonds if you're using the money to pay for qualified higher education costs. That includes expenses you pay for yourself, your spouse or a qualified dependent. Only certain qualified higher education costs are covered, including: Tuition.

What is one downside to investing in treasuries? ›

But while they are lauded for their security and reliability, potential drawbacks such as interest rate risk, low returns and inflation risk must be carefully considered. If you're interested in investing in Treasury bonds or have other questions about your portfolio, consider speaking with a financial advisor.

Is a TreasuryDirect account safe? ›

Treasury securities are considered a safe and secure investment option because the full faith and credit of the U.S. government guarantees that interest and principal payments will be paid on time.

What are the risks of investing in Treasury bills? ›

While interest rates and inflation can affect Treasury bill rates, they're generally considered a lower-risk (but lower-reward) investment than other debt securities. Treasury bills are backed by the full faith and credit of the U.S. government. If held to maturity, T-bills are considered virtually risk-free.

Can you lose money on bonds if held to maturity? ›

After bonds are initially issued, their worth will fluctuate like a stock's would. If you're holding the bond to maturity, the fluctuations won't matter—your interest payments and face value won't change.

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