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, at most local financial institutions or through payroll deduction. As a TreasuryDirect account holder, you can purchase, manage, and redeem I Bonds directly from your Web browser.
Find information for those affected by Hurricane Katrina
- 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
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| Current Rate: | 0.00% through October 31, 2009 |
| Minimum purchase: | $50 for a $50 I Bond when purchasing paper bond certificates $25 for a $25 I bond when purchased electronically via TreasuryDirect |
| Maximum purchase (per calendar year): |
$5,000 in TreasuryDirect and $5,000 in paper bonds |
| Denominations: | Paper bonds: $50, $75, $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 or electronic issue in TreasuryDirect accounts |
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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 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.
Redemption Information
- 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
Tax Considerations
- Interest earnings are exempt from State and local income taxes, but are subject to State and local estate, inheritance, gift, and other excise 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?
