Everything You Need To Know About Baby Bonds (Series A, B, C, D)

Last Updated: February 26, 2019 | by Jackie Brahney | reviewed by Jack Quinn

Older series Savings Bonds work differently from E, EE or I Savings Bonds. Learn where to obtain cash-in values, interest rates and if they are still earning interest.

What Are Baby Bonds?

The first non-marketable savings type security offered to the (non-professional) investor became available in 1935. The first bond sold in March 1935, sold for $18.75 with a $25 face value. These U.S. Savings Bonds (Series A-D) were often referred to as “Baby Bonds”.

Through the sales of these bonds, the government borrowed $3.9 billion, and it was the start of something big! It was the beginning of the U.S. Savings Bond market – with millions of Americans investing hundreds of billions of dollars!


What Older Bonds Were Issued?

  • A Bonds were introduced in March 1935.
  • B Bonds were offered in 1936.
  • C Bonds were offered in 1937 and 1938.
  • D Bonds were issued in 1939 through April 1941.

How Do Baby Bonds Work?

  • Denominations available;  $25.00 to $1,000.00
  • Sold at 74% of face value
  • Accrued interest at 2.9%, compounded semi-annually (when held for 10 years)
  • 10 year maturity period
  • Sold in post offices and U.S. Treasurer’s Office

What Are The Maturity Periods For These Bonds?

Unlike E, EE or the I Bond which usually earn interest for 30 or even 40 years, “Baby Bonds” have small maturity periods. They are worth their face value if you held (and then redeemed them) them for 10 years. Baby bonds are not listed on the FS 3600 forms. All of these bonds have matured and are no longer earning any interest.

What Are My Bonds Worth?

The SavingsBonds.com complimentary savings bond calculator will value paper U.S. Savings Bonds issued since 1941. If you own paper E, EE or I Savings Bonds, use the SavingsBonds.com calculator to receive complimentary savings bond values, which also includes a printable, detailed Savings Bond Inventory Report.

SavingsBonds.com Tip: If you own any Baby Bonds, and you wish to redeem them, you must send them into a Federal Reserve Branch. Banks or credit unions will NOT redeem these bonds.


Do Your Parents And Grandparents Own These Bonds?

If you think anyone in your family may have ever owned one of these bonds, they could be worth up to 8 times their face value. If they were lost, stolen or possibly destroyed, they can be replaced and could be your lost treasure! Contact the Treasury Department for forms to replace these bonds.


Savings Bonds As Collectors Items

The actual bond (printed paper) may be worth more at an auction or to a collector than the face value (depending on the denomination), due to the limited availability of these bonds. Baby Bonds are worth their face value.

Created on: January 2, 2012

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Jackie Brahney

Marketing & Editorial Director at SavingsBonds.com
Jackie Brahney is the Marketing and Editorial Director and most notably, an U.S. Savings Bond Expert for SavingsBonds.com. Since 1991, she has done extensive research on savings bonds and state of the art savings bond valuation systems, and heads the company's public relations and marketing initiatives.
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