Series EE bonds double in value at 20 years, while Series I bonds adjust for inflation every six months; both are backed by the U.S. government and can be purchased online at TreasuryDirect.gov.
Buy Series EE or I savings bonds for low-risk, long-term savings. Series EE bonds double in value at 20 years and pay fixed interest. Series I bonds adjust for inflation and protect purchasing power. Both are backed by the U.S. government, so your principal is safe. Purchase online at TreasuryDirect.gov or through payroll deduction. Hold for at least 5 years to avoid penalties. Interest is federally taxable but exempt from state and local taxes.
Savings bonds are U.S. government IOUs that pay interest and are designed for long-term, low-risk savings goals.
Savings bonds are U.S. government IOUs that pay interest and are designed for long-term, low-risk savings goals.
Think of savings bonds as a promise from Uncle Sam. You hand over cash today, and the government promises to pay you back with interest down the road. Come 2026, only two types remain: Series EE and Series I bonds. Both carry the U.S. Treasury’s rock-solid guarantee — safer than most anything in your wallet. Start with just $25 or go up to $10,000 per series each year. Interest sneaks in twice a year and piles up monthly, but you only see a dime when you finally cash out.
(Honestly, this is the best approach when you want zero drama with your savings.)
According to the U.S. Treasury, these bonds aren’t for quick getaways; they’re built for goals that need years to grow, like college funds or a retirement cushion.
Savings bonds differ from stocks and corporate bonds because their interest rates are set by the U.S. Treasury, not market forces, and they offer predictable returns with government backing.
Savings bonds differ from stocks and corporate bonds because their interest rates are set by the U.S. Treasury, not market forces, and they offer predictable returns with government backing.
No ticker symbols. No frantic sell-offs at 3 p.m. Savings bonds operate on a completely different wavelength from stocks or corporate bonds. Their interest rates come straight from the Treasury, not Wall Street mood swings. Newer EE bonds issued after May 2021 lock in at 0.10% annually, yet every EE bond printed after 2005 still doubles in value at the 20-year mark, no matter what the fine print says. I bonds, meanwhile, split their personality: a fixed base rate plus an inflation kicker that resets every six months — perfect for when grocery prices decide to go on a rollercoaster.
The Investopedia crowd will tell you these bonds feel safe, but don’t expect fireworks. Returns usually trail high-yield savings accounts or short-term CDs, especially when the Fed cranks up rates.
| Feature | Series EE Bond | Series I Bond |
|---|---|---|
| Minimum Purchase | $25 | $25 |
| Annual Purchase Limit (per person) | $10,000 | $10,000 |
| Interest Rate | Fixed (e.g., 0.10% as of 2026) | Fixed base + inflation rate (adjusted May & November) |
| Guarantee | Doubles in value at 20 years | Inflation-protected, no doubling guarantee |
| Tax Advantage | Federal tax deferred; state/local tax-free | Federal tax deferred; state/local tax-free |
To buy savings bonds in 2026, set up a TreasuryDirect account, choose between Series EE or I, and purchase online in $25 increments up to $10,000 per year.
To buy savings bonds in 2026, set up a TreasuryDirect account, choose between Series EE or I, and purchase online in $25 increments up to $10,000 per year.
- Decide which bond fits your goal.
- Choose Series EE if you like predictability and the government’s promise to double your money at 20 years.
- Choose Series I if you’d rather fight inflation than chase guarantees.
- Set up a TreasuryDirect account.
- Point your browser to TreasuryDirect.gov.
- Click “Open an Account,” then punch in your Social Security number, email, and bank details.
- Turn on two-factor authentication — it’s the digital equivalent of locking the front door.
- Purchase your bonds.
- Log in, click “Buy Direct,” then “Savings Bonds,” then choose EE or I.
- Type in how much you want, in $25 chunks, and hit submit.
- Your bank account coughs up the cash in one to two business days.
- Choose a registration type.
- Single Owner: only you can touch the bond.
- With Beneficiary: when you’re gone, the bond slides to your heir automatically.
- Co-Owners: both names must sign to cash out.
- Confirm and save your confirmation.
- An email lands with the bond’s birthday, serial number, and how much you paid.
- Save it somewhere safe — you’ll need those digits when the bond finally matures.
Don’t forget two backdoor routes: your employer’s payroll savings plan (if they still offer it) or your federal tax refund via IRS Form 8888.
The IRS swears using your refund is the easiest, most secure way to snag paper I bonds. If you're looking for ways to optimize your tax savings, consider exploring health savings account options.
If TreasuryDirect fails, check your browser, verify your bank account, or call TreasuryDirect Support at 1-800-333-6837 for assistance.
If TreasuryDirect fails, check your browser, verify your bank account, or call TreasuryDirect Support at 1-800-333-6837 for assistance.
Nothing’s perfect, not even TreasuryDirect. If the site balks or your purchase stalls:
- Check your browser and cookies. Chrome, Edge, or Firefox with cookies enabled play nicest with TreasuryDirect.
- Verify your bank account. Make sure your bank allows ACH transfers and hasn’t frozen your account.
- Call TreasuryDirect Support. Dial 1-800-333-6837 (TTY: 1-800-732-2973) weekdays 8 a.m.–5 p.m. ET. They’re the human lifeline when tech fails.
Still hunting for paper bonds? Only two ways remain: grab them via your tax refund or ask an employer that still hands them out. Most banks and credit unions will cash them for you, usually without charging a fee.
To avoid common savings bond mistakes, hold bonds for at least five years, track maturity dates, secure your TreasuryDirect account, update beneficiaries, and keep digital records.
To avoid common savings bond mistakes, hold bonds for at least five years, track maturity dates, secure your TreasuryDirect account, update beneficiaries, and keep digital records.
- Keep your mitts off for five years. Cash in too soon and you kiss the last three months of interest goodbye. A $100 bond cashed at 4 years and 9 months? Expect roughly $98.50 back.
- Mark your calendar for maturity. EE bonds born after 2005 hit 30 years. I bonds do the same. Once they’re 30, interest stops, but the bond itself keeps breathing — redeem it or watch value evaporate.
- Lock down your account. TreasuryDirect holds your financial DNA. Use a password manager, craft a unique password, and flip on two-factor authentication.
- Double-check your beneficiary. Review the name every couple of years. People move, families change — don’t let an old designation haunt your heirs.
- Digitize everything. Screenshot or PDF your purchase confirmations and redemption receipts. When tax time rolls around, you’ll thank yourself. For more on managing unique financial records, check out unique financial strategies.
According to the Consumer Financial Protection Bureau, digital records are your best friend for long-term holdings like savings bonds — they keep forgotten assets from becoming ghost stories.
Savings bonds are issued by the federal government and backed by the “full faith and credit” guarantee.
Savings bonds are issued by the federal government and backed by the “full faith and credit” guarantee.
Savings bonds are different from other Treasuries because you can start with as little as $25. Like Treasuries, the interest you earn is subject to federal income tax, but you won’t pay state or local income taxes on it.
Savings bonds differ from other bonds because their interest rates are set by the U.S. Treasury on a schedule twice each year.
Savings bonds differ from other bonds because their interest rates are set by the U.S. Treasury on a schedule twice each year.
Treasury bonds earn a set rate of interest determined at auction, varying with current market rates. Savings bonds, however, have rates set by the Treasury on a schedule twice each year. Savings bonds earn monthly interest that is then compounded semiannually.
The major disadvantage of savings bonds is their low rate of return.
The major disadvantage of savings bonds is their low rate of return.
You’ll likely find higher interest rates elsewhere, even with other conservative investments. High-yield savings accounts backed by the U.S. government often pay more than savings bonds. If you're looking for alternative ways to grow your money, consider learning about unique investment strategies.
Series EE bonds are sold at face value with an annual purchase limit of $30,000, while Series I bonds are sold at face value with a maximum of $60,000 face value per year.
Series EE bonds are sold at face value with an annual purchase limit of $30,000, while Series I bonds are sold at face value with a maximum of $60,000 face value per year.
Electronic EE bonds are sold at face value with an annual purchase limit of $30,000. Series I bonds are also sold at face value, but individuals can purchase a maximum of $60,000 face value per year ($30,000 paper bonds and $30,000 electronic bonds).
You will never lose any of your principal investment in EE bonds because they’re backed by the U.S. Treasury.
You will never lose any of your principal investment in EE bonds because they’re backed by the U.S. Treasury.
Since U.S. savings bonds are backed by the U.S. Treasury, they’re one of the lowest-risk investments in the world. That means you won’t lose any of your principal investment, though the trade-off is a low return on interest.
Saving bonds are purchased from the government and guaranteed to increase in value.
Saving bonds are purchased from the government and guaranteed to increase in value.
Saving bonds are purchased directly from the government and are guaranteed to increase in value over time. They’re also backed by the government to protect against loss.
The pros of savings bonds include safety and some tax advantages, while the cons include low returns and limited eligibility for tax benefits.
The pros of savings bonds include safety and some tax advantages, while the cons include low returns and limited eligibility for tax benefits.
- Pro: Savings bonds are safe. U.S. savings bonds are a government-guaranteed, safe, low-risk investment.
- Con: Savings bonds offer low returns.
- Pro: They offer some tax advantages.
- Con: Not everyone is eligible for tax advantages.
For long-term investing, a U.S. savings bond is a good choice, especially the Series I bond with its variable rate.
For long-term investing, a U.S. savings bond is a good choice, especially the Series I bond with its variable rate.
If you’re investing for the long haul, a U.S. savings bond is a solid pick. The Series I savings bond has a variable rate that can give you the benefit of future interest rate increases. For short-term goals, a CD offers more flexibility than a savings bond. If you're interested in exploring other investment options, you might want to learn about unique financial tools.
Savings bonds are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government.
Savings bonds are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government.
Savings bonds are debt securities issued by the U.S. Department of the Treasury to help pay for the U.S. government’s borrowing needs. Because they’re backed by the full faith and credit of the U.S. government, they’re considered one of the safest investments available.
At 20 years, EE bonds will be worth twice what you pay for them, regardless of the current interest rate.
At 20 years, EE bonds will be worth twice what you pay for them, regardless of the current interest rate.
What interest will you get if you buy an EE bond now? The annual interest rate for EE bonds issued from May 2021 through October 2021 is 0.10%. Regardless of that rate, at 20 years the bond will be worth twice what you pay for it.
When you redeem savings bonds with interest earned, that interest is subject to federal income tax and federal gift taxes.
When you redeem savings bonds with interest earned, that interest is subject to federal income tax and federal gift taxes.
If you hold savings bonds and redeem them with interest earned, that interest is subject to federal income tax and federal gift taxes. You won’t pay state or local income tax on interest earnings, but you may pay state or inheritance taxes if those apply where you live.
EE bonds issued from May 2021 through October 2021 earn an annual interest rate of 0.10%, but will be worth twice their purchase price at 20 years.
EE bonds issued from May 2021 through October 2021 earn an annual interest rate of 0.10%, but will be worth twice their purchase price at 20 years.
If you buy an EE bond now, what interest will it earn? The interest rate for a bond bought from May 2021 through October 2021 is an annual rate of 0.10%. Regardless of the rate, at 20 years the bond will be worth twice what you pay for it.
In a period of rising rates and declining prices, long-term bond funds will decline in value more than intermediate-term and short-term bonds.
In a period of rising rates and declining prices, long-term bond funds will decline in value more than intermediate-term and short-term bonds.
The age of the bond matters. The longer the maturity, the larger the swing in price in relation to interest rate movements. In a period of rising rates and declining prices, the long-term bond funds will decline in value more than intermediate-term and short-term bonds.
Any bonds dated 1989 or earlier stopped paying by the end of 2019, so their value is now frozen.
Any bonds dated 1989 or earlier stopped paying by the end of 2019, so their value is now frozen.
So any bonds dated 1989 or earlier — the first generation, so to speak — will have stopped paying by the end of 2019. At that point, their value is frozen, so there’s no reason other than nostalgia to hang onto them. Instead, you can cash them in and put the money to more productive uses.
To cash in Series EE bonds, log in to TreasuryDirect and follow the directions there, or cash paper EE and E bonds at most local financial institutions.
To cash in Series EE bonds, log in to TreasuryDirect and follow the directions there, or cash paper EE and E bonds at most local financial institutions.
How do you cash EE and E bonds? Log in to TreasuryDirect and follow the directions there. The cash amount can be credited to your checking or savings account within two business days of the redemption date. You can also cash paper EE and E bonds at most local financial institutions.
