Savings Bonds: About — TreasuryDirect (2024)

Savings Bonds: About — TreasuryDirect (1)

When you buy a U.S. savings bond, you lend money to the U.S. government.

In turn, the government agrees to pay that much money back later - plus additional money (interest).

U. S. savings bonds are

Savings Bonds: About — TreasuryDirect (2)

Simple

Buy once. Earn interest for up to 30 years.

Savings Bonds: About — TreasuryDirect (3)

Safe

Backed by the full faith and credit of the U.S. government.

Savings Bonds: About — TreasuryDirect (4)

Affordable

Buy them for as little as $25.

You can buy 2 types of U. S. savings bonds

EE Bonds

Guaranteed to double in value in 20 years

Earn a fixed rate of interest

Current Rate: 2.70%

For EE bonds issued May 1, 2024 to October 31, 2024

Electronic only – keep them safe in your TreasuryDirect account

Buy for any amount from $25 up to $10,000.

Maximum purchase each calendar year: $10,000.

Can cash in after 1 year. (But if you cash before 5 years, you lose 3 months of interest.)

More about EE bonds

(Note: Older EE bonds may be different from ones we sell today.)

I Bonds

Protect against inflation. The interest rate on a particular I bond changes every 6 months, based on inflation.

Current Rate: 4.28%

This includes a fixed rate of 1.30%

For I bonds issued May 1, 2024 to October 31, 2024

Primarily electronic – keep them safe in your TreasuryDirect account (minimum amount $25)

You can choose to use all or part of your IRS tax refund to buy paper I bonds (minimum amount $50)

Maximum purchase each calendar year: $10,000 in electronic I bonds + $5,000 in paper I bonds

Can cash in after 1 year. (But if you cash before 5 years, you lose 3 months of interest.)

Interest rate is calculated from a fixed rate and the inflation rate.

More about I bonds

You may have an older bond

HH Bonds

We stopped selling HH savings bonds in 2004

But they have a 20-year life. So, if you have one, you may still be getting interest on it.

More about H/HH bonds

Other historical bonds

Since 1935, we've offered many bond series, each with its own rates and terms.

Some even funded special causes — for the Postal Service, the Armed Forces, and others.

More about historical and retired bond series Cashing in (redeeming) an old paper bond

Financial Institutions:

Help Customers Cash In Their Savings Bonds

View special instructions on how to cash in paper Savings Bonds that customers may bring in to your bank.

Savings Bonds: About — TreasuryDirect (5)

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Savings Bonds: About — TreasuryDirect (2024)

FAQs

What are the disadvantages of TreasuryDirect? ›

Securities purchased through TreasuryDirect cannot be sold in the secondary market before they mature. This lack of liquidity could be a disadvantage for investors who may need to access their investment capital before the securities' maturity.

What is the downside of Treasury I bonds? ›

Further, I-bonds must be held for at least a year, so you won't be able to cash them out before a year is up if the rate plunges due to falling inflation. In fact, you'll lose the last three months of interest if you redeem them before five years are up.

How much is a $100 EE savings bond worth after 30 years? ›

How to get the most value from your savings bonds
Face ValuePurchase Amount30-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

Should I put my savings in Treasury bonds? ›

Treasury bonds can be a good investment for those looking for safety and a fixed rate of interest that's paid semiannually until the bond's maturity. Bonds are an important piece of an investment portfolio's asset allocation since the steady return from bonds helps offset the volatility of equity prices.

Is TreasuryDirect a good idea? ›

If you're looking for a safe place to park your cash, you may want to consider T-bills or other government securities. Since your return will be lower than the return of riskier fixed-income and equity investments, using TreasuryDirect is smart, since it cuts out the middleman — and eliminates any commissions and fees.

Is it better to buy treasuries from broker or TreasuryDirect? ›

There are several ways to buy Treasuries. For many people, TreasuryDirect is a good option; however, retirement savers and investors who already have brokerage accounts are often better off buying bonds on the secondary market or with exchange-traded funds (ETFs).

Can you loss money on I bonds? ›

“With I bonds, your principal is protected and safe. However, if you cash the bond out before five years, then you will lose up to the last three months of accrued interest.

What is the problem with I bonds? ›

Key Points. Pros: I bonds come with a high interest rate during inflationary periods, they're low-risk, and they help protect against inflation. Cons: Rates are variable, there's a lockup period and early withdrawal penalty, and there's a limit to how much you can invest.

What happens to I bonds if inflation goes down? ›

If inflation runs hotter, the rate can go up. If inflation cools off, the rate can go down. The fixed rate portion of an I Bond remains with the life of the bond. The fixed rate is 1.3% for I Bonds issued from November 2023 through April.

How much is a $50 Patriot bond worth after 20 years? ›

After 20 years, the Patriot Bond is guaranteed to be worth at least face value. So a $50 Patriot Bond, which was bought for $25, will be worth at least $50 after 20 years. It can continue to accrue interest for as many as 10 more years after that.

Do savings bonds double every 10 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.

What is the difference between a savings bond and a Treasury bond? ›

Finally, savings bonds can't be traded or sold between individuals (no secondary market) and must be redeemed through the government itself. By comparison, Treasury bonds, municipal bonds, and corporate bonds are much more liquid; all three types can be traded on a secondary market before maturity.

Are T-bills better than CDs? ›

T-bills have a key advantage over CDs: They're exempt from state income taxes. The same is true with Treasury notes and Treasury bonds. If you live in a state with income taxes, and rates are similar for CDs and T-bills, then it makes sense to go with a T-bill.

How do you avoid tax on Treasury bonds? ›

The Treasury gives you two options:
  1. Report interest each year and pay taxes on it annually.
  2. Defer reporting interest until you redeem the bonds or give up ownership of the bond and it's reissued or the bond is no longer earning interest because it's matured.
Dec 12, 2023

How much will I make on a 3 month treasury bill? ›

3 Month Treasury Bill Rate is at 5.25%, compared to 5.25% the previous market day and 5.10% last year. This is higher than the long term average of 4.19%.

What is one downside to investing in Treasuries? ›

But while they are lauded for their security and reliability, potential drawbacks such as interest rate risk, low returns and inflation risk must be carefully considered. If you're interested in investing in Treasury bonds or have other questions about your portfolio, consider speaking with a financial advisor.

Is a TreasuryDirect account safe? ›

Treasury securities are considered a safe and secure investment option because the full faith and credit of the U.S. government guarantees that interest and principal payments will be paid on time.

What are the risks of investing in Treasury bills? ›

While interest rates and inflation can affect Treasury bill rates, they're generally considered a lower-risk (but lower-reward) investment than other debt securities. Treasury bills are backed by the full faith and credit of the U.S. government. If held to maturity, T-bills are considered virtually risk-free.

What is the downside of purchasing I bonds? ›

Variable interest rates are a risk you can't discount when you buy an I bond, and it's not like you can just sell the bond when the rate falls. You're locked in for the first year, unable to sell at all.

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