You can buy a savings bond as a gift directly from the U.S. Treasury, either in your name with the recipient named as the owner, or in the recipient's name with yourself as the purchaser

The method depends on whether you want the recipient to own the bond immediately or whether you want to hold it and give it later. If you buy through TreasuryDirect (the official government platform), you can register the bond in the recipient's name right away, and they can claim it whenever they set up their own account. If you buy a paper bond through a bank or broker, you physically hand over the certificate, which works like a traditional gift.

The main limitation is that you cannot buy a bond in someone else's name unless you have their Social Security number or tax ID, and for minors, you typically need to set up a custodial account or name yourself as the custodian. The process takes about 10 minutes online if you go through TreasuryDirect, or a few days if you order paper bonds through a financial institution.

Key Takeaways

  • TreasuryDirect lets you buy a bond registered in the recipient's name using their Social Security number, and they can claim it later by opening their own account.
  • Paper savings bonds purchased through a bank or broker can be held in your name and given as a physical certificate whenever you choose.
  • For a minor, you must either register the bond in their name with yourself as custodian, or hold it in your own name until they reach adulthood.
  • Series EE bonds and Series I bonds are the two types available as gifts; Series I bonds protect against inflation while Series EE bonds earn a fixed rate.
  • Bonds purchased as gifts cannot be transferred or changed to a different owner once issued, so confirm the recipient's name and Social Security number before buying.

Buying a bond in the recipient's name through TreasuryDirect

Go to TreasuryDirect.gov, create an account if you don't have one, and log in. Click "Buy Direct" and select the bond type (Series EE or Series I). Enter the purchase amount—you can buy from $25 to $10,000 per bond type per calendar year through TreasuryDirect.

When prompted for the owner, select "Individual" and enter the recipient's full name, Social Security number, and date of birth. You will be the purchaser, but the bond will be registered in their name. Complete the purchase using your bank account (TreasuryDirect only accepts electronic transfers, not credit cards). The bond is issued immediately, and the recipient can claim it by creating their own TreasuryDirect account and linking it to the Social Security number you used.

This method works best when you want the recipient to own the bond right away and you don't need a physical certificate to wrap and present. The recipient can see the bond in their account as soon as they log in, though they cannot cash it until they meet the bond's maturity terms.

Buying a paper bond and holding it as a gift

If you want to physically hand over a bond certificate, you can buy paper Series EE bonds through most banks and some brokers. Call your bank's bond desk or visit in person, tell them you want to buy a Series EE bond as a gift, and provide the recipient's name and Social Security number. The bank will register the bond in the recipient's name and issue a paper certificate.

You then hold the certificate and give it to the recipient whenever you choose—at a birthday, holiday, or whenever you decide. The recipient can cash it at their bank once they reach the maturity date or after 30 days, whichever is later. Paper bonds are no longer issued by the Treasury for new purchases through TreasuryDirect, so a bank is your only option if you want a physical certificate.

Paper bonds typically cost more in fees than electronic bonds, and you lose the ability to track the bond's value online. However, they create a tangible gift that can be presented in person.

Buying a bond in your name and giving it later

You can also buy a bond in your own name and transfer ownership to the recipient later, but this is more complicated. You would need to contact TreasuryDirect or your bank to request a change of ownership, which usually requires paperwork and may trigger tax consequences depending on when the bond was purchased and when you transfer it.

A simpler approach: buy the bond in your name, let it grow, and then give the recipient the bond certificate or the account access when you're ready. The recipient becomes responsible for any taxes owed on the interest once they take ownership. This method is useful if you want to keep the gift a surprise and don't want to use the recipient's Social Security number upfront.

What to know about bonds for minors

If the recipient is under 18, you cannot register a bond in their name alone. Instead, you register it in their name with yourself (or another adult) listed as custodian. This means you control the bond until the minor reaches the age of majority (usually 18 or 21, depending on your state).

To set this up through TreasuryDirect, create an account, select "Individual with Custodian" when you reach the owner section, and enter the minor's name, Social Security number, and date of birth, along with your own information as custodian. The bond will be held in the minor's name, but you manage it until they come of age. At that point, the custodianship ends and they take full control.

For paper bonds, the bank will handle the custodial registration when you provide the minor's information and state that you are the custodian.

Series EE versus Series I bonds as gifts

Series EE bonds earn a fixed interest rate set by the Treasury and announced every six months. The rate applies to all bonds purchased during that six-month period. Series EE bonds double in value after 20 years if held to maturity, though they can be cashed in after 30 days (with a penalty if cashed before five years).

Series I bonds earn a rate that combines a fixed portion and an inflation adjustment that changes every six months. If inflation is high, Series I bonds earn more; if inflation is low, they earn less. The fixed portion never changes for the life of the bond. Series I bonds also cannot be cashed in for one year, and there is a three-month interest penalty if cashed before five years.

For a gift, Series I bonds are often better if you expect inflation to remain elevated, while Series EE bonds are simpler if you want a predictable return. Both can be held for up to 30 years.

Tax and legal considerations for gift bonds

Savings bonds are not subject to state or local income tax, only federal tax. The recipient (not you) will owe federal tax on the interest when the bond is cashed or reaches final maturity. If the bond is registered in the recipient's name, they report the interest on their own tax return.

There is no federal gift tax on savings bonds under current law, even if you buy a large amount. However, if you buy a bond in someone else's name, that purchase is considered a completed gift, and you cannot change the owner later. Make sure the recipient's name and Social Security number are correct before you buy.

If the recipient is a minor and you are the custodian, you may be able to defer reporting the interest until the bond is cashed or the minor reaches adulthood, depending on how you structure the account. Consult a tax professional if you are buying bonds for a minor and want to understand the tax timing.

Frequently Asked Questions

Can I change the owner of a bond after I buy it as a gift?

No. Once a bond is issued in someone's name, the owner cannot be changed. If you make a mistake with the recipient's name or Social Security number, you must contact TreasuryDirect or your bank immediately to cancel and repurchase. This is why confirming the information before you buy is critical.

What if I want to give the bond but keep it in my name?

You can buy a bond in your own name and physically give the certificate or account information to the recipient later. However, you remain the registered owner, and you will owe the federal tax on the interest. The recipient cannot claim the bond as their own unless you formally transfer ownership, which requires paperwork and may have tax consequences.

How long does it take to buy a bond as a gift?

Through TreasuryDirect, the bond is issued immediately after you complete the purchase online. Paper bonds ordered through a bank typically take three to five business days to arrive. If you are giving the bond as a gift, plan ahead so you have the certificate or account information ready when you want to present it.

Can I buy a savings bond as a gift if I don't know the recipient's Social Security number?

No. You need the recipient's full name, date of birth, and Social Security number or tax ID to register a bond in their name. If you don't have this information, you can buy the bond in your own name and transfer it later, though this requires additional paperwork and may trigger tax issues.

Are there limits on how many bonds I can buy as gifts?

Yes. Through TreasuryDirect, you can buy up to $10,000 per bond type (Series EE and Series I) per calendar year per person. If you want to buy more, you can purchase paper bonds through a bank, which may have different limits depending on the institution.