Yes, the U.S. Treasury still sells savings bonds, but only in electronic form through its TreasuryDirect website. Two series are available: Series EE and Series I. Both can be purchased for as little as $25, and every bond sold today is a digital entry in your TreasuryDirect account, backed by the full faith and credit of the federal government.1TreasuryDirect. Timeline of U.S. Savings Bonds
Paper savings bonds are no longer issued. Banks stopped selling them in 2011, and the last paper option, buying Series I bonds with a federal tax refund, ended on January 1, 2025.1TreasuryDirect. Timeline of U.S. Savings Bonds
The Two Series You Can Buy
Series EE Bonds
Series EE bonds pay a fixed interest rate set when you buy them, and that rate stays the same for the life of the bond. For bonds issued between November 1, 2025, and April 30, 2026, the fixed rate is 2.50%.2TreasuryDirect. EE Bonds
The distinctive feature of EE bonds is a Treasury guarantee that the bond will double in value if you hold it for 20 years. If the stated 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 to keep up with inflation. The rate has two parts: a fixed rate that stays with the bond for its full life, and a variable inflation rate that resets every six months based on the Consumer Price Index. The Treasury publishes new rates every May 1 and November 1.
For bonds issued between November 1, 2025, and April 30, 2026, the composite rate is 4.03%, built from a 0.90% fixed rate and a 1.56% semiannual inflation rate.4TreasuryDirect. I Bonds Interest Rates
For both series, interest accrues on the first day of each month and compounds semiannually.5eCFR. 31 CFR Part 351 Subpart B6eCFR. 31 CFR 359.16 – When Does Interest Accrue on Series I Savings Bonds
Who Can Buy and How Much
You need to be a U.S. citizen or resident with a Social Security Number. Federal civilian employees and members of the armed forces can buy regardless of where they live.7eCFR. 31 CFR Part 353 You must be at least 18 to open your own TreasuryDirect account.8GovInfo. 31 CFR 363.11 Minors can own bonds through a Minor Linked Account that a parent or legal guardian sets up inside their own account.
Annual purchase limits run per Social Security Number or Employer Identification Number:
- Up to $10,000 per calendar year in Series EE bonds
- Up to $10,000 per calendar year in Series I bonds
That puts the maximum at $20,000 per person per year across both series.9TreasuryDirect. How Much Can I Spend/Own? A trust, estate, or business with its own EIN gets its own separate $10,000 limit in each series, even if it shares a Social Security Number with your individual account.
Opening a TreasuryDirect Account
All purchases go through TreasuryDirect.gov. To open an individual account, have these on hand:
- Your Social Security Number
- A U.S. street address (a P.O. box alone will not meet the residency requirement)
- A U.S. checking or savings account and its routing number
- An email address
Entities such as trusts and corporations open accounts using an Employer Identification Number instead.8GovInfo. 31 CFR 363.11 The linked bank account is where the Treasury pulls funds for purchases and sends money when you cash a bond.
Placing an Order
Once the account is active, go to the BuyDirect section, pick Series EE or Series I, and enter any amount from $25 to $10,000, down to the penny. After a confirmation screen, submit the order. The Treasury typically debits your linked bank account within one business day, and the bond then appears in your account, where you can watch its value and accumulated interest.10TreasuryDirect. Savings Bonds – Buying Savings Bonds
You can also buy a bond as a gift. During the order you enter the recipient’s name and Social Security Number and check the gift box. The bond sits in a Gift Box inside your account for at least five business days before you can deliver it, and the recipient needs their own TreasuryDirect account to receive it (or, for a child, a Minor Linked Account under a parent or guardian).11TreasuryDirect. How to Buy a Gift Savings Bond in TreasuryDirect A gift counts against the recipient’s annual limit, not yours.
When you buy, you also pick a registration type: sole owner, owner with a beneficiary, or primary owner with a secondary owner. The choice controls who can access the bond and what happens to it if you die, and you can change a beneficiary or secondary owner later without their consent.12eCFR. 31 CFR 363.20
When You Can Cash Them
Savings bonds come with time-based rules. You cannot cash a bond during the first 12 months of ownership; there are no exceptions.13TreasuryDirect. Cashing EE or I Savings Bonds
Cash a bond between 12 months and five years and you forfeit the last three months of interest. Redeem at 18 months, for example, and you receive 15 months of interest. The penalty never reduces the bond below what you paid for it.14eCFR. 31 CFR 359.7 After five years, redemption carries no penalty.
Both series stop earning interest 30 years after issue.2TreasuryDirect. EE Bonds At that point there is no reason to keep holding.
How the Interest Is Taxed
Savings bond interest is subject to federal income tax but exempt from all state and local income taxes. It is also exempt from state estate and inheritance taxes.15TreasuryDirect. Tax Information for EE and I Bonds
Most owners defer reporting the interest until they actually get the money, either by cashing the bond or by holding it to final maturity. You receive a Form 1099-INT in the year of redemption and report the full accumulated interest then. The other option is to report interest annually as it accrues, which can be useful for a bond held by a child with little other income. If you start out deferring and later switch to annual reporting, you have to report all previously unreported interest in the year you switch.
A separate education exclusion can wipe out federal tax on the interest entirely if you use the proceeds for qualified higher education expenses for yourself, your spouse, or a dependent. The bond must be a Series EE or Series I issued after 1989 and bought in your name when you were at least 24, and you cannot file as married filing separately. For the 2025 tax year, the exclusion phases out between $99,500 and $114,500 of modified adjusted gross income for single filers, and between $149,250 and $179,250 for married couples filing jointly.16Internal Revenue Service. Form 8815 The IRS typically adjusts those thresholds for inflation each year. You claim the exclusion on IRS Form 8815.