Yes, the U.S. government still sells savings bonds. Two series are available today, Series EE and Series I, and both are sold only in electronic form through the Treasury’s TreasuryDirect website. Paper certificates ended in 2011, and the last paper option — buying Series I bonds with a tax refund — was eliminated on January 1, 2025.1TreasuryDirect. Timeline of U.S. Savings Bonds You can start with as little as $25, and every bond you buy is an electronic entry in your TreasuryDirect account, backed by the full faith and credit of the federal government.
What You Can Buy Today
Two series, two different ways of earning interest.
Series EE Bonds
Series EE bonds pay a fixed rate set at purchase and locked in for the life of the bond. For bonds issued between November 1, 2025, and April 30, 2026, that rate is 2.50%.2TreasuryDirect. EE Bonds The distinctive feature is a Treasury guarantee: an EE bond held for 20 years will double in value. If the fixed rate alone wouldn’t get you there, the Treasury makes a one-time adjustment at the 20-year mark to close the gap.3eCFR. 31 CFR Part 351 – Offering of United States Savings Bonds, Series EE
Series I Bonds
Series I bonds are built around inflation. They earn a composite rate combining a fixed portion that stays put for the life of the bond and a variable portion tied to the Consumer Price Index that resets every six months. The Treasury announces new rates each May 1 and November 1. For bonds issued between November 1, 2025, and April 30, 2026, the composite rate is 4.03%, made up of a 0.90% fixed rate and a 1.56% semiannual inflation rate.4TreasuryDirect. I Bonds Interest Rates
Both series stop earning interest 30 years after issue.2TreasuryDirect. EE Bonds
Who Can Buy and How Much
To purchase savings bonds, you need to be a U.S. citizen or resident with a Social Security Number. Civilian federal employees and members of the armed forces can buy regardless of where they live.5eCFR. 31 CFR Part 353 – Regulations Governing Definitive United States Savings Bonds, Series EE and HH You must be at least 18 to open your own TreasuryDirect account.6GovInfo. 31 CFR 363.11 – Who Is Eligible to Open a TreasuryDirect Account A parent or guardian can hold bonds for a minor through a Minor Linked Account inside their own TreasuryDirect account.
The Treasury caps annual purchases by Social Security Number or Employer Identification Number:
- Up to $10,000 per calendar year in electronic Series EE bonds.
- Up to $10,000 per calendar year in electronic Series I bonds.
That puts one person’s ceiling at $20,000 a year across both series.7TreasuryDirect. How Much Can I Spend/Own? The old $5,000 paper I bond option through a tax refund is gone as of January 1, 2025. If you also own bonds through a trust, estate, or business account with its own Employer Identification Number, that entity gets its own separate $10,000 limit per series.
How to Buy Savings Bonds
Every purchase runs through TreasuryDirect.gov. Setting up an individual account requires:
- Your Social Security Number.
- A U.S. street address (a P.O. box alone won’t do).
- A U.S. checking or savings account and routing number for electronic debits and credits.
- An email address for account communications.
Entities open accounts with an Employer Identification Number instead of a Social Security Number.6GovInfo. 31 CFR 363.11 – Who Is Eligible to Open a TreasuryDirect Account
Once the account is active, go to BuyDirect, pick Series EE or Series I, and enter any amount from $25 to $10,000, down to the penny. Confirm the order and submit. The Treasury typically debits your linked bank account within one business day, and the bond appears in your account where you can check its current value at any time.8TreasuryDirect. Savings Bonds – Buying Savings Bonds
Buying a Bond as a Gift
You can buy bonds for someone else. During the order, enter the recipient’s name and Social Security Number and check the gift box. The bond sits in a Gift Box in your account for at least five business days before you can deliver it. The recipient needs their own TreasuryDirect account to receive it, or a Minor Linked Account if they’re under 18.9TreasuryDirect. How to Buy a Gift Savings Bond in TreasuryDirect Gift purchases count against the recipient’s annual limit, not yours.
When You Can Cash Them
Savings bonds are a locked commitment at first. You cannot redeem either series until you’ve held the bond for 12 months, with no exceptions.10TreasuryDirect. Cashing EE or I Savings Bonds
If you cash out between one and five years, you forfeit the last three months of interest. Redeem at 18 months and you keep 15 months of interest. The penalty never cuts into your original principal.11eCFR. 31 CFR 359.7 – If I Redeem a Series I Savings Bond Before Five Years After the Issue Date, Is There an Interest Penalty? After five years, redemptions carry no penalty.
How the Interest Is Taxed
Savings bond interest is subject to federal income tax but exempt from all state and local income taxes. It’s also exempt from state estate and inheritance taxes.12TreasuryDirect. Tax Information for EE and I Bonds
You have two reporting options. Most owners defer, reporting all the accumulated interest in the year they cash the bond or when it hits final maturity at 30 years. In that year you get a Form 1099-INT for the full amount. The alternative is to report interest annually as it accrues, which can make sense for a bond owned by a child with little other income. Switching from deferral to annual reporting means catching up on all previously unreported interest in the year you switch.
The Education Exclusion
You may be able to keep the interest out of federal income entirely if you use the proceeds for qualified higher education expenses such as tuition and fees for yourself, your spouse, or a dependent. The bonds must be Series EE or Series I issued after 1989, and you must have been at least 24 when you bought them and listed as the owner. Married filing separately doesn’t qualify.
The exclusion phases out at higher incomes. For the 2025 tax year, it begins phasing out at modified adjusted gross income of $99,500 for single filers and $149,250 for joint filers, and disappears entirely at $114,500 and $179,250.13Internal Revenue Service. Form 8815 – Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989 The IRS adjusts these thresholds each year. Claim the exclusion by filing IRS Form 8815 with your return.