Savings Bonds

U.S. Savings Bonds

Savings Bonds are a popular way to save and invest money safely for the long-term. Issued by the U.S. Treasury savings bonds are the safest investment one can buy. However, buying US savings bonds requires understanding some basic information about savings bonds, how U.S. savings bonds work, and the difference between Series EE bonds, Series I Bonds, and even Series E bonds and Series H savings bonds.

US Treasury Savings Bonds Buying Online Direct

The United States Treasury Department sells saving bonds directly to the public through its website Treasury Direct. The Treasury Direct website (be careful to note that it ends with .gov and NOT .com which is an unaffiliated website) can be used to find a US savings bonds value, calculate bond values online, and even lookup the interest rates for savings bonds.

Details for how to buy savings bonds online are here.

A is available for investors looking to find out what the value ofa specific bond is, as well as providing a starting point for finding out if US Savings Bonds have been cashed already.

Series EE Savings Bonds

The most common US Savings Bond today is the EE Savings Bonds which offer investors a fixed rate of interest and guaranteed principal for the life of the saving bond.

Other types of savings bonds include Series I Savings Bonds which are U.S. savings bonds indexed for inflation, and Series H Savings Bonds where are specialty saving bonds that are no longer sold.

How Much Do Savings Bonds Earn

The current interest rates for savings bonds are set every six months by the United States Treasury Department based upon an interest rate index used to calculate what a bond's interest rate will be.

Investors can lookup old savings bonds interest rates on the Treasury Direct website as well. Older bonds earn a variable interest rate which is recalculated every six months, while all newly issued savings bonds have a fixed-interest rate.

I Bonds have a two-part interest rate. One part of the I-Bond interest rates is fixed, while the other adjusts with inflation based upon a consumer pricing index that measures inflation. In periods of high inflation, I Bonds pay more than EE Bonds. In periods of low inflation I Bonds pay less than EE Bonds.

Savings Bonds Taxes

Taxes on savings bond interest are not due until the bond is cashed, or the the bond matures whichever comes first. That means you cannot avoid taxes on matured savings bonds by not cashing them.

Introduction to Investing In Bonds

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