Can you still buy a savings bond at a bank?
Until a few years ago, you could buy paper savings bonds at most financial institutions. Today, you get electronic savings bonds directly from the U.S. Department of the Treasury's website, TreasuryDirect.gov.
Since January 1, 2012, paper savings bonds are no longer available at banks or other financial institutions. Paper Series I bonds can still be bought with IRS tax refunds, but Series EE bonds are available only in electronic form. There are two types of savings bonds currently available.
Many financial institutions provide services to their clients that allow them to purchase government bonds through their regular investment accounts. If this service is not available to you through your bank or brokerage, you also have the option to purchase these securities directly from the government.
Go to www.treasurydirect.gov and use the Savings Bond Calculator. Each year, buy as much as $10,000 of electronic Series I, $10,000 of electronic Series EE, and $5,000 of paper Series I. Earn interest for up to 30 years.
Buying paper Series I savings bonds
The only way to get a paper savings bond now is to use your IRS tax refund. You can buy any amount up to $5,000 in $50 increments. We may issue multiple bonds to fill your order.
| Face Value | Purchase Amount | 30-Year Value (Purchased May 1990) |
|---|---|---|
| $50 Bond | $100 | $207.36 |
| $100 Bond | $200 | $414.72 |
| $500 Bond | $400 | $1,036.80 |
| $1,000 Bond | $800 | $2,073.60 |
Series I bonds are sold at face value and mature after 30 years. Interest is added monthly to the bond's value.
Before that, you could purchase paper I bonds at banks and other financial institutions. Now, only one byzantine method remains: You must fill out IRS form 8888 to elect part or all of your tax refund money go toward buying paper I bonds — up to $5,000 and in multiples of $50 (i.e., $50, $100, $150, and so on).
Buying bonds injects money into the money market, increasing the money supply. When the central bank wants interest rates to be higher, it sells off bonds, pulling money out of the money market and decreasing the money supply.
I bonds can be good investments for parents or grandparents who are looking to save money for their children and grandchildren. First, I bonds can be a steadier and more predictable investment than the stock market — it's redemption value will not decline because it is backed by the U.S. government.
What banks will cash savings bonds?
Wells Fargo and Truist are two banks that will do this, provided that the bonds total less than $1,000 and you bring proper documentation.
Our Online Bond may be right for you if:
You want to know exactly how much interest you'll earn on your savings. You'd like the flexibility of choosing either monthly or annual interest payments. You're happy to leave your money untouched for a fixed term.
Bonds remain a safe, easy way to save and earn money over time. The Treasury guarantees to not only pay you back – but to double your initial investment over 20 years.
Series EE savings bonds are a low-risk way to save money. They earn interest regularly for 30 years (or until you cash them if you do that before 30 years). For EE bonds you buy now, we guarantee that the bond will double in value in 20 years, even if we have to add money at 20 years to make that happen.
| Total Price | Total Value | Total Interest |
|---|---|---|
| $50.00 | $69.94 | $19.94 |
Savings bond interest is subject to federal income tax; however, taxation can be deferred until redemption, final maturity, or other taxable disposition, whichever occurs first. You also have the option of claiming interest annually for federal income tax purposes.
| Total Price | Total Value | YTD Interest |
|---|---|---|
| $500.00 | $2,127.80 | $50.40 |
That rate remains the same for at least the first 20 years. It may change after that for the last 10 of its 30 years. We guarantee that the value of your new EE bond at 20 years will be double what you paid for it.
There are two primary reasons a bond might be worth less than its listed face value. A savings bond, for example, is sold at a discount to its face value and steadily appreciates in price as the bond approaches its maturity date. Upon maturity, the bond is redeemed for the full face value.
Bottom line. I bonds, with their inflation-adjusted return, safeguard the investor's purchasing power during periods of high inflation. On the other hand, EE Bonds offer predictable returns with a fixed-interest rate and a guaranteed doubling of value if held for 20 years.
What documents do I need to cash a savings bond?
If you're cashing in a paper savings bond of $1,000 or less, you'll need FS Form 1522 and a copy of your driver's license, passport, state ID or military ID. If the bond amount is more than $1,000, you must have your signature certified by a notary or certifying officer.
Most bonds can be cashed in after one year, but you will lose three months' worth of interest if you cash them in before five years.
A Social Security Number must be provided. If this is a gift bond purchase, use the owner's name and SSN, if available. If the owner's SSN is not available, use the purchaser's SSN.
TreasuryDirect.gov is the one and only place to electronically buy and redeem U.S. Savings Bonds. We also offer electronic sales and auctions of other U.S.-backed investments to the general public, financial professionals, and state and local governments.
EE Bond and I Bond Differences
The interest rate on EE bonds is fixed for at least the first 20 years, while I bonds offer rates that are adjusted twice a year to protect from inflation. EE bonds offer a guaranteed return that doubles your investment if held for 20 years. There is no guaranteed return with I bonds.
