Terms of Use 

The U.S. Treasury Department offers two types of savings bonds:  Series EE and Series I Savings Bonds. 

Series EE U.S. Savings Bonds are sold at face value and are worth their full value upon redemption. These bonds offer a fixed rate of interest, which is paid at maturity or redemption.

Series I U.S. Savings Bonds are also sold at face value. These bonds offer a variable rate of interest that is adjusted for inflation. If inflation increases, the interest rate on the savings bond will be adjusted upward. During periods of deflation, the bonds are guaranteed never to drop below 0.00%.

Series EE and Series I bonds can be purchased in electronic form, while Series I bonds are also available to be purchased in paper form with your IRS tax refund.

Key advantages of savings bonds:

  • Popularity as gifts. Savings bonds are a popular birthday and graduation gift and also can be used toward financing education, supplemental retirement income, and other special events. Unlike other securities, minors may hold U.S. savings bonds in their own name.
  • Tax advantages. You pay no state or local taxes on the interest on the bonds, and you can defer paying federal taxes on the interest until you cash in the bond or until it matures. In addition, tax benefits are available for eligible taxpayers when Series EE and Series I savings bonds are used for qualified education expenses. 
  • You can buy these electronic savings bonds in penny increments, from $25 up to $5,000 each year. 
Savings bonds can be purchased directly from the Treasury Department by opening a TreasuryDirect online account at www.treasurydirect.gov