Savings bonds are sold in exactly one place: TreasuryDirect.gov, the U.S. Department of the Treasury’s own platform. Banks stopped issuing them over the counter on January 1, 2012. The paper option that ran through federal tax refunds was retired on January 1, 2025, so every purchase today is electronic. Below: how Series I and Series EE differ, what the annual limit really is, and how to spot the look-alike sites impersonating the Treasury.
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What Savings Bonds Do and Who Should Buy Them
A savings bond is a non-marketable debt security issued by the United States Department of the Treasury that accrues interest for up to 30 years and is redeemed by the registered owner instead of traded. Congress created the program in 1935 to help fund public debt, and the Bureau of the Fiscal Service runs it today. Because these are backed by the full faith and credit of the U.S. government, they sit near the floor of the risk scale for any dollar-denominated investment.
They suit savers with a horizon of five years or longer, parents building a college fund, and anyone wanting an inflation-indexed place to park money without market risk. They do not suit anyone who might need that cash inside twelve months. The lockup is absolute, with no early-exit clause and no secondary market to sell into.
Features Worth Comparing: Series I vs Series EE Bonds
Only two series are still issued, and the choice comes down to inflation tracking versus a guaranteed doubling.
Rate structure. Series I pays a composite of a fixed rate that stays attached for the life of the bond plus a variable rate tied to CPI-U inflation. Series EE pays one fixed rate of interest set at purchase. Both reset for new issues on May 1 and November 1.
The 20-year guarantee. Series EE carries a Treasury promise to double in value at year 20, topped up with a one-time credit if the stated interest rate did not get there. Series I has no such floor. That turns EE into a defined-outcome holding if you can commit for two decades.
Tax treatment. Interest is exempt from state or local taxes and deferred for federal tax until you redeem the security. Interest used to pay tuition may be federally excludable under the Education Savings Bond Program, but the owner must have been at least 24 when the bond was issued, which rules out anything registered to a child.
Denomination and limits. Electronic savings bonds are sold at face value in any amount from $25 up to the remaining allowance on your Social Security Number.
| Feature | Series I | Series EE |
|---|---|---|
| Rate | Fixed rate plus semiannual inflation rate | Single fixed rate |
| Guarantee | None beyond principal | Doubles in value at year 20 |
| Annual limit per SSN | $10,000 per calendar year | $10,000 per calendar year |
| Format | Electronic only | Electronic only |
| Best use | Protect against inflation | Fixed 20-year target |
What Not to Do: Common Savings Bond Buying Pitfalls
The costliest mistake is not picking the wrong series. It is handing a Social Security Number to a site the Treasury does not run.
Trusting any domain that is not treasurydirect.gov. Typosquatted look-alikes harvest identity data. Read the address bar character by character before typing anything.
Following advice written before 2025. Plenty of guides still tell readers to claim paper certificates on their tax refund. That channel closed on January 1, 2025, and Form 8888 no longer offers it.
Walking into a bank to buy one. Tellers at financial institutions have not been able to issue a new certificate since 2012. They can still help customers cash older holdings, a different transaction entirely.
Buying a marketplace listing. Anything advertised on eBay or Amazon is either a scam or an already-redeemed certificate with no face value.
Paying a processing fee. The Treasury charges nothing to purchase, hold, or redeem. Any fee request is a fraud signal.
Finding Savings Bonds Near You: What Banks Can and Cannot Do
No physical location in the United States sells new Treasury savings bonds. Not banks, not credit unions, not brokerages, not retail stores. Branches still matter for two other errands.
Banks and credit unions
Your bank can redeem mature paper certificates presented by the registered owner with photo identification. Policies vary by institution: some cash them only for existing account holders, and many cap what a non-customer can cash in one visit. Call the branch first and ask whether they handle Treasury redemptions at all, because plenty of smaller branches no longer do.
Brokerages and financial advisors
Fidelity, Schwab, Vanguard, and Robinhood all sell Treasury bills, notes, and TIPS, but none of them sell savings bonds. The Treasury distributes this product directly, which is why no advisor commission or custodial charge attaches to it.
Ordering Savings Bonds Online: Where and Why
There is one authorized online seller: TreasuryDirect.gov. The same login holds bills, notes, TIPS, and floating rate notes, so it doubles as a hub for every United States Treasury security you own. Purchases move by ACH debit from a linked checking or savings account, and confirmations land in the site’s secure message center rather than your inbox.
- Open a TreasuryDirect account. You need a Social Security Number, a U.S. address, a state ID, and a bank routing and account number.
- Clear identity verification. Some applicants must mail a signature-guaranteed form before the account activates, so start ahead of a rate deadline.
- Link your bank. That one account handles every purchase and redemption afterward.
- Pick the series and amount. Choose Series I or Series EE, then enter anything from $25 up to your remaining allowance for the calendar year.
- Record the dates. Note the twelve-month lock, the five-year penalty line, and the 30-year final maturity.
Check the rate page before May 1 and November 1. If you need a portable cash instrument instead, see our guide on where to buy money orders.
Redemption Rules and Buyer Protection
Almost no buying guide spells out the exit rules, yet the redemption schedule is the feature most likely to change your mind. Rules verified July 2026; confirm on the Treasury site before you act.
| Situation | Rule | Practical note |
|---|---|---|
| Before 12 months | Cannot redeem | Exceptions only in federally declared disaster areas |
| Year 1 to year 5 | Forfeit last three months of interest | Penalty shrinks in relative terms the longer you wait |
| After 5 years | Penalty-free | Continues to earn interest until year 30 |
| Lost paper certificate | Replaceable by the Treasury | File FS Form 1522; signature guarantee may apply |
| Issuer risk | Full faith and credit of the U.S. | No FDIC cap applies, the obligation is direct |
The category gotcha: a partial redemption must leave at least $25 in the position, so you cannot draw a holding down to loose change. Buying money you might need in year two? Split it across several smaller holdings rather than one large one, then redeem only what you need.
Which Bond Series Is Worth Buying
These picks are ranked by holding period and goal, not by rate, because rates reset twice a year and any number printed here would be stale within months.
Best overall: Series I bonds. The inflation component resets every six months against CPI-U, so purchasing power holds up when prices climb. Pro: the fixed portion is locked for 30 years. Con: the composite can fall to near zero in a low-inflation stretch. See the current terms.
Best for a fixed 20-year goal: Series EE. The doubling guarantee produces a known outcome at year 20, which suits a target date like a child’s freshman year. Con: redeem at year 19 and you get the stated rate only.
Best for gifting: Series I in the TreasuryDirect Gift Box. You buy in the recipient’s name and hold it until they open their own account. Delivered gifts count against their limit, not yours.
Best for a child: a linked minor account. Opened inside your own login, it carries the child’s Social Security Number and its own $10,000 allowance. Control transfers at 18.
Historical only: Series HH and Series E. Neither is issued anymore and both have stopped earning. If you hold them, cash them. For a hard-asset hedge that behaves very differently, compare with where to buy gold.
Open the account this week rather than the week a rate changes, since verification can add days. Decide the series before you fund it, because switching later means redeeming and losing interest. Readers comparing small-denomination financial instruments often pair this with our guide to where to buy Visa gift cards. Buying savings bonds only through official federal channels protects your capital and your identity.
FAQ: Buying Savings Bonds
Can I still buy paper savings bonds with a tax refund?
No. The Internal Revenue Service stopped issuing paper Series I certificates with federal income tax refunds on January 1, 2025, and the election was dropped from IRS Form 8888. Every new purchase is issued electronically. Paper certificates you already hold stay valid and keep accruing interest on their original schedule.
How much is a $100 savings bond worth after 30 years?
It depends on the issue date and the rates in force over those decades, so no single figure applies. Use the official Savings Bond Calculator on the Treasury site: enter the series, denomination, and issue date and it returns the exact current value. On a paper bond, the issue date is printed on the face, not the year you received it.
What is the annual purchase limit per person?
Each Social Security Number can buy $10,000 of electronic Series I and $10,000 of Series EE per calendar year through a TreasuryDirect account. Undelivered gift purchases do not count against your limit; they count against the recipient’s in the year of delivery. The allowance resets January 1 and does not roll over.
When can I cash in a savings bond?
Twelve months after the issue date at the earliest. Redeem before year five and you give up the most recent three months of interest. After year five there is no penalty, and the security keeps earning until final maturity at 30 years, after which it earns nothing and should be cashed.
Are savings bonds still worth it?
They compete as a safety allocation rather than a growth one. The deferred interest, the state and local tax exemption, and the government backing are the real draw, not the headline yield. A high-yield savings account may pay more in a given year but offers no inflation linkage and no 20-year doubling floor.
Editorial review: wheretobuyguides.com team. Retailer links and rules last verified July 2026, with reference to published guidance from the U.S. Department of the Treasury and the Internal Revenue Service.