Basic Information About
U.S. Savings Bonds
What is a U.S. Saving Bond?
US Savings Bonds are non-marketable securities meaning you cannot buy or sell them unless you are an authorized issuing and redeeming agent designated by The US Treasury Department. They are also considered a registered security - which means that the person or persons named on the bond owns them.
Who Issues US Savings Bonds?
The US Treasury Department issues Savings Bonds.
Why people buy US Savings Bonds
There are several reasons why Americans buy Savings Bonds. Often safety is cited as a primary reason. Savings Bonds are backed by the full faith and credit of the United States Government, therefore, the principal and interest will never be lost due to changes in the financial markets.
Savings Bonds are free from all state and local income taxes, unless they are Estate/inheritance taxes or required by the Internal Revenue Code (1986). Also, you can defer federal income taxes on the earnings if you wait until the bond reaches final maturity or when you cash it in. You can invest as little as $25 (and even smaller amounts from Payroll Deductions Plans), so it is an easy way for Americans to save. Some Savings Bonds are even entirely Federal Income Tax Free if used for Educational Purposes. Learn more about Education Bonds.
Where to buy US Savings Bonds
Currently there are three types of bonds available for purchase: Series EE, Series I, and the Patriot Bond (first issued on December 11, 2001 - the 3 month anniversary of the WTC/terrorist attacks) - following all the same rules and regulations of an EE bond. Read our "10 Things You Should Know About The Patriot Bond" Report for more about the Patriot Bond.
In the past, you could only purchase Savings Bonds at your local bank, but EFFECTIVE: 1/1/2012 You can no longer purchase paper EE Savings Bonds or I Savings Bonds at a local bank, financial institution or credit union. As of 1/1/2012, the Treasury Department started issuing electronic savings bonds only. Note: The Treasury Dept. will still issue paper savings bonds if you are Replacing Lost Bonds or Changing a Beneficiary/Co-Owner Name.
Since the Treasury Department stopped issuing new paper savings bonds as of 1/1/2012, you have to buy electronic savings bonds through the TreasuryDirect instead (click here to learn more). See the current savings bond rates for bonds available for purchase.
Savings Bonds Currently Available for Purchase
Other Savings Bond Information
|Other Savings Bond Topics|
|Pay for College with Tax Free Earnings - Ted Franklin describes why the stock market, mutual funds, 529 and Coverdell Plans may be some of the worst places to invest your hard earned money|
|Education Bonds - an in-depth look at using savings bonds for tax-free education|
|Taxes on Savings Bonds - can you avoid paying taxes on bonds? cash vs. accrual methods for reporting interest|
|The Crisis In Savings Bonds - an extensive, highly-researched, 28-page, full-color document with graphs and credible source notes|
|Tax-Free Savings Fund - learn how to setup a tax-free college savings account using US savings bonds|