You can buy a savings bond as a gift by naming someone else as the owner when you purchase it

When you buy a savings bond through TreasuryDirect (the official U.S. government website for savings bonds), you choose who owns it at the moment of purchase. If you want the bond to belong to someone else—a child, grandchild, spouse, or anyone else—you simply enter their name and Social Security number as the owner during checkout, and you pay for it. The bond is then registered in their name from day one. You never own it; they do.

This is different from buying a bond for yourself and later giving it to someone. A bond purchased in someone else's name belongs to them immediately, and they are the only person who can cash it in or make changes to it later. This matters for taxes and for control of the money.

The process takes about 15 minutes online, and the bond appears in the recipient's TreasuryDirect account (or a new account is created for them if they don't have one yet).

Key Takeaways

  • You purchase the bond through TreasuryDirect and enter the recipient's name and Social Security number as the owner during checkout.
  • The recipient must have a Social Security number, and you will need their full legal name and date of birth to complete the purchase.
  • Series EE bonds and Series I bonds are the two types available for gift purchases, and they have different interest structures.
  • The recipient owns the bond immediately and can view it in their own TreasuryDirect account once the purchase settles.
  • The recipient pays income tax on the interest when they cash the bond in, not when you buy it.

What information you need before you start

Before you log into TreasuryDirect, gather the recipient's information. You will need their full legal name exactly as it appears on their Social Security card, their date of birth, and their Social Security number. If any of these details are wrong, the purchase will not go through.

You will also need to decide which type of bond to buy: Series EE or Series I. Series EE bonds earn a fixed interest rate set by the Treasury Department and announced every six months. Series I bonds earn interest that combines a fixed rate plus an inflation rate that changes every six months. If you think inflation will be high, Series I bonds typically pay more. If you want a predictable, steady rate, Series EE is simpler. Both require you to hold them for at least one year before cashing them in, and both penalize you with a loss of the last three months of interest if you cash them in before five years.

You will also choose how much to spend. The minimum purchase is $25, and you can buy up to $10,000 per bond type per calendar year through TreasuryDirect (so you could buy $10,000 in Series EE and $10,000 in Series I in the same year).

How to set up a TreasuryDirect account if you don't have one

If you have never used TreasuryDirect before, you need to create an account first. Go to treasurydirect.gov and click "Open an Account." You will provide your own name, Social Security number, date of birth, and email address. You will also create a username and password. The process takes about 10 minutes.

Once your account is set up, you can buy bonds for yourself or as gifts for others. Your account is separate from the recipient's account—you will see the purchase in your account history, but the bond itself will live in the recipient's account once it settles.

You will need a valid payment method: a checking or savings account (for an electronic transfer) or a credit or debit card. TreasuryDirect does not accept PayPal or other third-party payment services.

The step-by-step purchase process

Log into your TreasuryDirect account and click "BuyDirect." Select the bond type you want (Series EE or Series I). You will then see a screen asking whether this bond is for you or for someone else. Select "Someone else" and enter the recipient's information: full legal name, date of birth, and Social Security number.

Next, choose the amount. You can buy in any dollar amount from $25 to $10,000 (or up to your annual limit if you have already bought bonds this year). Enter the amount and review the purchase details. The price you pay is the amount you entered—there are no hidden fees or markups.

Choose your payment method (bank account or card) and complete the transaction. You will receive a confirmation email immediately. The bond will appear in the recipient's TreasuryDirect account within one to two business days, though it may take a few days longer for the account to be created if the recipient does not already have one.

What happens after you buy the bond

Once the bond settles in the recipient's account, they own it completely. They can log into TreasuryDirect (or you can help them set up their login if they do not have one) and see the bond's current value, the interest it has earned so far, and when they can cash it in without penalty.

The recipient does not have to do anything with the bond right away. It will keep earning interest whether they check on it or not. If they want to cash it in before one year has passed, TreasuryDirect will not allow it. If they cash it in between one and five years, they lose the last three months of interest as a penalty. After five years, they can cash it in with no penalty.

When the recipient cashes in the bond, they will owe federal income tax on the interest it earned. They do not owe tax when you buy it or while they hold it—only when they redeem it. The Treasury Department will send them a Form 1099-INT showing how much interest they earned, which they report on their tax return.

Buying bonds for minors and what you should know

You can buy a savings bond in a child's name even if they are very young. You will use their Social Security number and legal name. The bond belongs to the child, not to you, even though you paid for it. This means you cannot cash it in without the child's permission once they reach the age of majority (usually 18), though you can manage it on their behalf while they are a minor if you have access to their TreasuryDirect account.

If you want to buy a bond that you control until a child reaches a certain age, a savings bond is not the right tool. You would need to look into a custodial account or a trust, which are more complex and usually involve a bank or financial advisor. A savings bond purchased in a child's name is theirs to control once they turn 18.

The interest earned on a bond owned by a minor is taxable income to the minor, not to you. Depending on the child's other income, this might mean they owe tax on it, or it might fall below the threshold where tax is required. You should consult a tax professional if you are buying bonds for multiple children or large amounts.

Alternatives if you want to give someone cash instead

If the recipient would prefer cash or flexibility, you could simply give them money and let them buy their own bond. They would log into TreasuryDirect themselves and make the purchase. This takes the same amount of time and has no additional cost.

You could also buy a bond in your own name and then give it to someone later by transferring it. However, this is more complicated than buying it in their name from the start. You would need to contact TreasuryDirect customer service to request a transfer, and the recipient would have to accept it. For a gift, buying it in their name upfront is simpler.

If you want to give a gift but are not sure whether the recipient wants a bond, you could give them a gift card or cash and let them decide. Savings bonds are a good gift for people who want to save money and earn interest without taking on investment risk, but they are not right for everyone.

Frequently Asked Questions

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

No. TreasuryDirect requires the recipient's full legal name, date of birth, and Social Security number to set up the bond. If you do not have this information, you cannot complete the purchase. You would need to ask the person giving you the gift information or choose a different gift.

What if the recipient doesn't have a TreasuryDirect account yet?

TreasuryDirect will create one automatically when you buy the bond in their name. They will receive an email with instructions to set up their login. They do not have to do anything immediately—the bond will be there waiting for them whenever they are ready to check on it.

Can I change my mind and get my money back after I buy the bond?

Once the bond is purchased and settles in the recipient's account, it belongs to them. You cannot cancel it or reverse the purchase. If you want to undo the transaction before it settles (usually within one to two business days), contact TreasuryDirect customer service right away to see if they can stop it.

Do I have to tell the recipient I bought them a bond?

No, but it is a good idea. If you buy a bond in someone's name without telling them, they might not know to check their TreasuryDirect account. You could give them a card or email letting them know the bond is there and how to log in to see it.

What is the difference between a Series EE and Series I bond as a gift?

Series EE bonds earn a fixed interest rate that stays the same for the life of the bond. Series I bonds earn interest that changes every six months based on inflation. If you expect inflation to rise, Series I typically pays more. If you want predictability, Series EE is simpler. Both require a one-year holding period and penalize early redemption before five years.