The Series I savings bond is the only savings bond available in paper form, and it can be purchased only through this program.
(Series I bonds also are available in electronic format, in TreasuryDirect.This page addresses paper I bonds only.)
What do I need to do?
When you file your tax return, include IRS Form 8888. Complete Part 2 to tell the IRS you want to use part (or all) of your refund to purchase paper I bonds. Purchase amounts must be in $50 multiples and you can choose to have any remaining funds delivered to you either by direct deposit or by check. You do not need to open a TreasuryDirect account; just follow the instructions on the form. Once your tax return has been processed by the IRS, your paper savings bonds will be mailed to you.
How much can I buy?
In any single calendar year, you can buy up to a total of $5,000 of paper I bonds using your refund. You buy I bonds at face value, meaning if you pay $50 (using your refund), you receive a $50 savings bond.
We may issue multiple bonds to fill your order. The bonds may be of different denominations. We use $50, $100, $200, $500, and $1,000 bonds. Again, the amount of your purchase can be any multiple of $50, from $50 to $5,000. You need to tell us only the amount. We determine denominations.
What registrations are available?
Single owner, co-owner, and beneficiary registrations are available for paper bonds. You can also request bonds in the names of other people and give the bonds to them as gifts.
Can I buy savings bonds for others using this tax refund method?
Yes. You can request paper bonds in the names of others, making it possible to give the bonds as gifts. They will be mailed to you at the address on file with the IRS.
How long will it take to receive my paper savings bonds?
They will be issued and mailed after the IRS processes your return. Once your savings bonds are issued, you should get them within three weeks. If you're having a portion of your refund deposited directly into your bank account, you may receive your refund before your bonds.
What will the issue date of my bonds be?
The issue date for paper bonds will be the first day of the month in which IRS submits payment for the bonds to Treasury Retail Securities Services in Minneapolis. For example, if Minneapolis receives your order from IRS on February 18, the issue date of your savings bonds will be February 1.
What if there's a mistake on my tax return?
If the IRS encounters errors on a return (refund amount is calculated incorrectly, IRS Form 8888 is completed incorrectly, requested amount is not a multiple of $50, etc.), the bond purchase will be cancelled and the full refund amount (if any) will be delivered to you.
Exception: If an error is made that increases the refund amount, the bond purchase will occur as requested and only the additional funds will be returned.
For more detail on how the IRS manages changes in refund amounts, see the instructions on IRS Form 8888.
What do I do if I don't get my paper savings bonds?
The first step is to check the status of your refund by going to " Where's My Refund" on www.irs.gov or calling (800) 829 - 1954. According to the IRS, you can check the status within 24 hours of when the IRS receives your e-filed return, or four weeks after you mail a paper return. If the IRS has processed your refund and placed the order for your savings bonds, call 844-284-2676 (toll free) to inquire about the status of your savings bonds.
For more information, see "Series I Savings Bonds."
FAQs
If you have enough money in your refund, you can buy multiple bonds and, if you wish, you can give them multiple registrations. You may buy up to $5,000 in paper savings bonds with each year's tax refund. See more about how much can I spend and how much can I own.
Can I buy I bonds with my tax refund? ›
You can use all or part of your tax refund to purchase I bonds. Your request for bonds must be in increments of $50. Any remaining refund amount not used to purchase bonds will be mailed to you as a paper check or you may elect to have the remaining amount direct deposited into a checking or savings account.
Can I buy I bonds through TreasuryDirect? ›
You can buy I bonds in electronic form, at face value, after you open a TreasuryDirect® account. Purchase prices start at $25, and you can buy in any amount above that up to $10,000 per person, per calendar year. You also can buy an I bond in paper form, through the Tax Time Purchase Program.
How much is a $100 savings bond worth after 30 years? ›
How to get the most value from your savings bonds
| 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 |
May 7, 2024
Can I buy I bonds every calendar year? Yes, you can purchase up to $10,000 in electronic I bonds each calendar year. You can also buy an additional $5,000 in paper I bonds using your federal tax return.
How long does it take the Treasury to process paper savings bonds? ›
Cashing a Series HH savings bond where you are named on the bond and you send it in requires at least 3 months of processing time. All other requests may require 6 months or more to process. The annual purchase limit for Series I savings bonds in TreasuryDirect is $10,000.
What is the downside of an I bond? ›
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.
How to buy paper Treasury 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. The bonds may be of different denominations.
Is now a good time to buy an I bond? ›
Answer: Now may be the perfect time to invest in bonds. Yields are at levels you could only dream of 15 years ago, so you'd be locking in substantial, regular income. And, of course, bonds act as a diversifier to your stock portfolio.
What can be purchased through TreasuryDirect? ›
You may purchase Bills, Notes, Bonds, FRNs, and TIPS during scheduled auctions through your TreasuryDirect account.
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 bonds or CDs better? ›
Bonds often offer higher interest rates than CDs, which may be appealing to those looking for a higher profit potential. Unlike CDs, where interest may accumulate and only be paid at maturity, bonds often provide ongoing interest payments, usually at monthly or quarterly intervals.
Do I get a tax break for buying I bonds? ›
I bonds also have important tax advantages for owners. For example, interest earned on I bonds is exempt from state and local taxation. Also, owners can defer federal income tax on the accrued interest for up to 30 years.
Are I bonds a good investment in 2024? ›
Yes, 4.28% is the current inflation interest rate if you purchase the I Bonds before October 31, 2024. The previous I Bonds interest rate was 5.27% for November 2023 to April 2024. This also means that the composite rate is also an annualized 4.28% for the first 6 months that the bond is held.
Can I buy I bonds through TurboTax? ›
You can designate up to $5,000 of your federal refund toward up to three Series I bonds, which will be mailed to the address on the your return. You'll see the option to purchase bonds when you get to How would you like to receive your federal refund? in the File section.
How long should you hold series I bonds? ›
Can I cash it in before 30 years? You can cash in (redeem) your I bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest.
