How to Buy Savings Bonds

Savings bonds can be purchased directly from the U.S. Department of the Treasury through its online platform, TreasuryDirect. These government-backed bonds are available in electronic form, offering a secure way to save money while earning interest over time. Paper savings bonds are no longer available for new purchases, including through federal income tax refunds. Buyers must create an account on TreasuryDirect to complete a purchase, selecting from available bond types and setting investment amounts within yearly limits. Savings bonds are registered to specific owners and generally cannot be traded or transferred like marketable bonds, although TreasuryDirect permits certain ownership changes and gift transactions.

A financial advisor can answer your questions about buying bonds and how they fit into your investment portfolio.

Where to Buy Savings Bonds

In 2012, everything relating to savings bonds switched to an online-only platform. TreasuryDirect, the U.S. Treasury Department’s official website, is where all savings bond transactions now occur. You must create an account with TreasuryDirect to begin purchasing bonds. The site allows purchases using a linked bank account. The TreasuryDirect Payroll Savings Plan ended on January 31, 2025, so that purchasing option is no longer available. ¹

Paper savings bonds were once available in financial institutions, including banks and credit unions. But because of the U.S. Treasury Department’s move to a virtual system, you can no longer do this. The option to purchase paper Series I bonds with a federal tax refund also ended on January 1, 2025. TreasuryDirect now sells new Series EE and Series I bonds electronically. Redeeming your bonds is as easy as a direct deposit to your checking or savings account.

Once you’re ready to go, simply authorize the redemption to disburse the funds.

Types of Savings Bonds

Savings bonds come in two forms: Series EE and Series I. Series EE bonds earn a fixed rate of return. On the other hand, Series I bonds receive interest based on a combination of a fixed rate and an inflation rate calculated bi-annually via the Consumer Price Index for All Urban Consumers (CPI-U).

1. Series EE Savings Bonds

As of the beginning of 2012, the U.S. Treasury Department completely eliminated paper savings bonds in an effort to save on paper and manufacturing costs. Therefore, if you want a Series EE savings bond, you’ll need to go through TreasuryDirect. To buy one, you generally need a Social Security number and must be a U.S. citizen, U.S. resident or civilian employee of the United States. The value of your bond is equal to the payment you make, meaning a $200 investment gets you a $200 savings bond.

Series EE bonds issued from November 1, 2026 through April 30, 2027 earn a fixed annual rate of 2.90%. ² The Treasury also guarantees that newly issued EE bonds will be worth at least twice their purchase price after 20 years.

2. Series I Savings Bonds

Series I savings bonds follow the same standards as their Series EE counterparts. You customarily buy them online through TreasuryDirect with a valid Social Security number and status as a U.S. citizen, resident or civilian employee. The Treasury discontinued paper I bond purchases through federal tax refunds in 2025. All new I bond purchases must be made electronically.

For Series I bonds issued fromNovember 1, 2026 through April 30, 2027, the initial composite annual rate is 5.51%, including a fixed component of 1.40%. The inflation component is adjusted every six months, so the bond’s composite rate can change during the holding period. ³

Electronic Series I bonds can be purchased in amounts starting at $25, including amounts specified to the penny.

3. Gift Savings Bonds

Gift savings bonds are a form of Series EE and Series I savings bonds. However, you will go through a slightly different process to gift them. Once they are in your possession, you need to make sure your recipient has his or her own TreasuryDirect online account. As soon as this is complete, you’ll be able to select the bond you want to gift and send it off. For a child younger than 18, an adult can establish a linked TreasuryDirect account to receive and hold the gift. Paper savings bonds are no longer available for new gift purchases.

You can buy gift bonds for anywhere from $25 to $10,000 each. The annual purchase limit applies to the recipient, so gifts must be considered alongside other bonds registered to that person. ⁴

How to Buy Savings Bonds

Buying savings bonds now takes place entirely through TreasuryDirect. The process is the same whether you are buying Series EE or Series I bonds, although the two types earn interest differently.

Purchasing Online via TreasuryDirect

To buy savings bonds through TreasuryDirect, start by creating an account on the official website. Once registered, log in and select the “BuyDirect” option. Choose between Series I or Series EE bonds, enter the desired purchase amount (within the annual limit of $10,000 per series), and link a checking or savings account for payment.

TreasuryDirect allows users to arrange purchases for themselves or others, including gifts and bonds registered with a co-owner or beneficiary. The bonds remain in electronic form, and owners can review their holdings and request eligible redemptions through their accounts.

Buying Savings Bonds With a Tax Refund

Federal income tax refunds can no longer be used to order paper Series I savings bonds. The Treasury ended that program at the beginning of 2025, eliminating the former option to direct up to $5,000 of a refund toward paper bonds using Form 8888.

Taxpayers who receive a refund can still choose to use the money for an electronic savings bond purchase after the refund reaches their bank account. For instance, someone who receives a $1,200 refund could deposit that money into a checking account and separately purchase $1,200 in Series I bonds through TreasuryDirect, provided they have sufficient room under the annual purchase limit.

Benefits and Risks of Savings Bonds

Savings bonds, regardless of type, come with minimal risk. The U.S. federal government backs them – a fact that affords them ample protection. In turn, they are especially great choices for any risk-averse investors looking to pad their existing assets over the long term.

Unlike stocks or mutual funds, savings bonds are not subject to market fluctuations, making them a low-risk investment. Additionally, interest earned is exempt from state and local taxes and may qualify for a federal income tax exclusion when the proceeds are used for eligible higher education expenses and the owner meets the applicable requirements.

Despite their stability, savings bonds come with limitations. They have strict redemption rules, requiring holders to wait at least one year before cashing out, and withdrawals within the first five years incur a penalty of three months’ interest. Their lower return potential compared to stocks or corporate bonds may not appeal to investors seeking higher growth. Additionally, annual purchase limits cap how much can be invested, restricting their role in a diversified portfolio.

Savings Bonds Compared to Other Investments

Savings bonds fall under the umbrella of fixed-income securities. These are investments that usually come with fixed interest rates and provide consistent returns. But there is more than one style of a fixed-income security, as municipal bonds, corporate bonds and exchange-traded funds (ETFs) also fit the bill.

Savings Bonds vs. Other Bonds

Municipal and corporate bonds are slightly riskier investments than savings bonds. Although this is a general statement, it rings true, because local governments and corporations are often less reliable than an entity like the U.S. federal government. In fact, insurance companies often back municipal bonds in case of default. Furthermore, if you purchase a corporate bond with a company with a low credit rating, you are facing a higher degree of risk.

Savings Bonds vs. ETFs

ETFs are diversified baskets of investments that passively track a market index instead of trying to beat it. These funds ordinarily operate within certain verticals, such as information technology companies and energy companies or even specific bond types. These funds trade like stocks, whereas savings bonds don’t often change hands. Because of this, ETFs give you maximum flexibility.

Savings Bonds vs. Stocks

On the opposite end of the investment spectrum from savings bonds are stocks. These equity investments do not earn at a fixed rate, but rather are exposed to the ups and downs of the financial performance of a company. This chance for fluctuation illustrates that stocks have one of the strongest potentials for a high return but also for a plunge.

Bottom Line

If you’re new to investing or prefer a low-risk option, savings bonds can be a good choice for your portfolio. You can buy them via a user-friendly online process through TreasuryDirect, as opposed to other investments that typically require a brokerage account. This simplicity, combined with the ultra-low risk nature of savings bonds, makes them well worth a look. As of 2026, all new savings bond purchases are electronic, with a $10,000 annual purchase limit for each of the two available series.

Tips to Become a Better Investor

• When thinking about what investments you could make to better meet your financial goals, consider working with a financial advisor. They can help you create a financial plan and even manage your money for you. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Understanding diversification is a great first step for anyone looking to step up his or her investment game. Diversifying is the process of spreading your investments out across the market. You do this to ensure that the health of your portfolio doesn’t require the success of a specific investment type.

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