I and EE Savings Bond Comparison

We currently offer two series of savings bonds for purchase: EE and I. Both series are offered in electronic and paper format. Here is a comparison of I Bonds and EE Bonds:

The following chart applies to electronic bonds purchased through TreasuryDirect. See notations below for paper bond differences.

For a more information, see the Savings Bonds Investor Guide

  I Bonds EE Bonds
Denominations Any amount of $25 or more, including penny increments* Any amount of $25 or more, including penny increments*
Purchase Price Face value** Face value**
Purchase Limit $5,000 per Social Security Number*** $5,000 per Social Security Number***
Interest Earnings
  • A fixed rate of return and a  variable semiannual inflation rate (based on CPI-U  for March and September) are combined
  • Interest compounds semiannually for 30 years
  • Bonds issued after May 2005 earn a fixed rate of return.
  • Variable rates for bonds bought from May 1997 through April 2005 are based on 90% of the 6-month averages of 5-year Treasury Securities yields.
  • Interest compounds semiannually for 30 years.
Redemption Can be redeemed after 12 months Can be redeemed after 12 months
Early Redemption Penalties 3-month interest penalty if redeemed during the first 5 years 3-month interest penalty if redeemed during the first 5 years
Taxes
  • Exempt from state and local income tax
  • TreasuryDirect reports interest earnings; an online 1099-INT shows interest reportable for tax purposes.
  • Tax benefits available when used for education expenses
  • Exempt from state and local income tax
  • TreasuryDirect reports interest earnings; an online 1099-INT shows interest reportable for tax purposes.
  • Tax benefits available when used for education expenses

On paper savings bonds issued or replaced on or after August 1, 2006, the first five digits of your Social Security number will be masked and replaced with asterisks. This is being done to protect your privacy and to prevent the information from being used for identity theft.

Paper savings bonds can be purchased at financial institutions or through employer payroll savings plans.

** Paper I Bonds are offered in 7 denominations- $50, $75, $100, $200, $500, $1,000, $5,000. They are purchased for their face value (for example, a $100 I bond costs $100).

Paper EE Bonds are offered in 8 denominations- $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000. They are purchased for 50% of their face value (for example, a $100 EE bond costs $50). This means that they take longer to mature than electronic bonds, as their value is based on interest rates. They are guaranteed to reach face value in 20 years.

***You can purchase an additional $5,000 in paper EE Bonds or paper I Bonds per Social Security number.