I Savings Bonds In Depth
I Bonds are a low-risk, liquid savings product. While you own them they earn interest and protect you from inflation. Once sold and redeemed solely as a paper security, they’re now also available in electronic form. As a TreasuryDirect account holder, you can buy, manage, and redeem I Bonds online.
A new program called SmartExchangeSM allows TreasuryDirect account owners to convert their Series E, EE, and I paper savings bonds to electronic securities in a special Conversion Linked Account within their online account.
Buying I Bonds through TreasuryDirect:
- Sold at face value; you pay $50 for a $50 bond.
- Purchased in amounts of $25 or more, to the penny.
- $5,000 maximum purchase in one calendar year.
- Issued electronically to your designated account.
Buying Paper I Bonds:
- Sold at face value; i.e., you pay $50 for a $50 bond.
- Purchased in denominations of $50, $75, $100, $200, $500, $1,000, and $5,000.
- $5,000 maximum purchase in one calendar year.
- Issued as paper bond certificates.
If you redeem I Bonds within the first 5 years, you'll forfeit the 3 most recent months' interest; after 5 years, you won't be penalized.
