I Savings Bonds
I Bonds are a low-risk, liquid savings product. While you own them they earn interest and protect you from inflation. You may purchase I Bonds via TreasuryDirect or with your IRS tax refund. As a TreasuryDirect account holder, you can purchase, manage, and redeem I Bonds directly from your Web browser.
- Purchase I Bonds
- Learn more in "I Savings Bonds in Depth"
- Convert Your Paper Savings Bonds
- Compare I Bonds with TIPS
Use I Bonds to:
- Finance education
- Supplement retirement income
- Give as a gift
|Current Rate:||1.94% through October 31, 2014|
|Minimum purchase:||$50 for a $50 I Bond when purchasing
paper bond certificates with your IRS tax refund
$25 for a $25 I bond when purchased electronically via TreasuryDirect
(per calendar year):
|$10,000 in TreasuryDirect and $5,000 in paper bonds purchased with IRS tax refunds|
|Denominations:||Paper bonds with your tax refund: $50, $100, $200, $500, $1,000, and $5,000
Electronic bonds via TreasuryDirect: purchase to the penny for $25 or more
|Issue Method:||Paper bond certificates with your tax refund or electronic issue in TreasuryDirect accounts|
Rates & Terms
- I Bonds have an annual interest rate that reflects the combined effects of a fixed rate and a semiannual inflation rate. They are an accrual-type security. Interest, if any, is added to the bond monthly and is paid when you cash the bond.
- I Bonds are sold at face value; i.e., you pay $50 for a $50 bond.
- Minimum term of ownership: 1 year
- Interest-earning period: 30 years
- Early redemption penalties:
- Before 5 years, forfeit 3 most recent months' interest
- After 5 years, no penalty
- Interest on savings bonds is subject to taxes imposed under the Internal Revenue Code of 1986. The bonds are exempt from taxation by any State or political subdivision of a State, except for estate or inheritance taxes.
- Interest earnings are subject to Federal income tax.
- Interest earnings may be excluded from Federal income tax when used to finance education (see education tax exclusions).
I Bond-Related FAQs
- How is the earnings rate of an I Bond determined?
- What is the difference between EE and I bonds?
- Are there tax benefits to using I Bonds to finance education?
- Can I give an I Bond as a gift?
- Can I ever lose money in I Bonds?