You can buy a savings bond as a gift by purchasing it in someone else's name through TreasuryDirect

When you buy a savings bond as a gift, you are the purchaser but the recipient is the owner. You set up the bond in their name, fund it with your money, and then give it to them. The recipient can hold it, cash it in, or pass it along—the choice is theirs once they receive it.

The most common way to give a bond as a gift is through TreasuryDirect, the U.S. Department of the Treasury's online platform. You create an account, register the bond in the recipient's name and Social Security number, and fund it from your bank account. The bond is then held in their TreasuryDirect account, and you can print a gift announcement to give them along with the bond itself.

Paper savings bonds—the physical certificates you might remember from decades past—are no longer sold. All new bonds are electronic and exist only in TreasuryDirect. This means the recipient will need to set up their own TreasuryDirect account or have one already in order to receive and manage the bond you give them.

Key Takeaways

  • You purchase the bond through TreasuryDirect using your own bank account, but register it in the recipient's name and Social Security number.
  • The recipient becomes the owner and can view, hold, or cash the bond once it appears in their TreasuryDirect account.
  • Series EE bonds and Series I bonds are the two types available for gift purchases, each with different interest structures.
  • You can give a bond to anyone—a child, spouse, friend, or other family member—as long as you have their full name and Social Security number.
  • The recipient will need a TreasuryDirect account to receive the bond, or you can help them set one up before you complete the purchase.

What you need before you start

To buy a savings bond as a gift, you will need your own TreasuryDirect account and a verified bank account linked to it. If you do not have a TreasuryDirect account yet, you can create one at treasurydirect.gov in about 15 minutes using your Social Security number and a valid email address.

You will also need the recipient's full legal name, date of birth, and Social Security number. This information is required to register the bond in their name. If the recipient is a minor, you will still need their Social Security number, but they do not need their own TreasuryDirect account yet—you can set one up for them, or they can claim the bond later when they turn 18.

Finally, decide which type of bond you want to give: Series EE or Series I. Series EE bonds earn a fixed interest rate set by the Treasury every six months. Series I bonds earn a combined rate of a fixed portion plus an inflation rate that changes every six months. Series I bonds are often chosen as gifts because they protect against inflation, but Series EE bonds are simpler if you want a predictable return.

The step-by-step process for purchasing a gift bond

Log into your TreasuryDirect account and click "Buy Direct" or "Purchase Securities." Select the bond type you want—Series EE or Series I—and the amount. The minimum purchase is $25, and you can buy up to $10,000 per calendar year in each series per person.

When prompted for the owner information, enter the recipient's name and Social Security number exactly as they appear on their identification. This is critical: if the name or number does not match their records, the bond will not transfer correctly to their account. Double-check before you submit.

Next, confirm the purchase amount and review the terms. TreasuryDirect will deduct the money from your linked bank account. The bond will be created and held in the recipient's name, but it will not appear in their TreasuryDirect account until they log in and claim it—or until you notify them and help them set up an account if they do not have one yet.

After the purchase is complete, TreasuryDirect will give you a confirmation number and allow you to print a gift announcement. This is a formal letter stating that a bond has been purchased in the recipient's name. You can print this, sign it, and give it to them along with instructions on how to access their bond through TreasuryDirect.

How the recipient accesses and manages the gift bond

The recipient will need to create or log into a TreasuryDirect account using their own Social Security number and email address. Once they log in, the bond you purchased will appear in their account under "My Securities." They can view the current value, the interest earned so far, and the maturity date.

From that point forward, the bond belongs to them. They can hold it until maturity (30 years for Series EE, 30 years for Series I), cash it in at any time after one year, or leave it to earn interest beyond maturity. If they cash it in before five years have passed, they will lose the last three months of interest as a penalty, but after five years they can redeem it without penalty.

If the recipient is a minor when you give them the bond, they will not be able to access the TreasuryDirect account until they turn 18. At that point, they can claim the bond and manage it themselves. Until then, you may be able to manage it on their behalf if you set up a custodial account, though this varies by state and requires additional paperwork.

Tax considerations for gift bonds

When you buy a bond as a gift, you are not making a taxable gift to the recipient in most cases. The IRS does not tax the act of giving a savings bond. However, the interest the bond earns is taxable income to the owner—the recipient.

The recipient can choose when to report the interest for tax purposes. They can report it each year as it accrues, or they can wait and report all of it when they cash the bond in or when it reaches final maturity. This choice is made when they file their tax return and can be changed from year to year.

If the bond is registered in a child's name and the interest is significant, there may be tax advantages to reporting it on the child's return rather than the parent's, depending on the child's income and the parent's tax bracket. A tax professional can advise on the best approach for your situation.

Giving a bond to a minor or setting up a custodial account

You can register a savings bond in a child's name and Social Security number without any special paperwork. The bond will be held in their name, and when they turn 18, they can access it through their own TreasuryDirect account.

If you want to manage the bond on the child's behalf before they turn 18, you have two options. First, you can set up a custodial TreasuryDirect account in your name with the child listed as the beneficiary. This requires additional documentation and varies by state. Second, you can simply register the bond in the child's name and manage it through your own account until they are old enough to take over—though this requires you to have their Social Security number and the ability to access their account information.

The simplest approach for most people is to register the bond in the child's name, give it to them when they turn 18 or when you feel they are ready to manage it, and let them set up their own TreasuryDirect account at that time. Until then, you can track the bond's value through your own account and monitor its growth.

Alternatives if the recipient does not have a Social Security number

If you want to give a bond to someone who does not have a Social Security number—such as a non-citizen or someone without a tax identification number—you cannot register it in their name through TreasuryDirect. The Treasury requires a Social Security number or Individual Taxpayer Identification Number (ITIN) to open an account and own a bond.

In this case, you can purchase the bond in your own name and then transfer it to the recipient later, or you can explore other gift options such as a different type of investment or a direct cash gift. If the person later obtains a Social Security number or ITIN, you may be able to transfer the bond to them at that time, though this process has limitations and should be discussed with a tax professional.

Frequently Asked Questions

Can I buy a savings bond as a gift for someone who already has a TreasuryDirect account?

Yes. The bond will simply appear in their existing account once you complete the purchase. You do not need to coordinate with them beforehand, though it is thoughtful to let them know a bond is coming so they are not surprised when they log in.

What happens if I make a mistake with the recipient's name or Social Security number?

Contact TreasuryDirect customer service as soon as possible. If the error is caught before the bond settles (usually within one business day), they may be able to cancel it and issue a refund. If it settles with incorrect information, the bond may not transfer to the recipient's account, and you will need to work with Treasury to correct it or request a replacement.

Can I give a savings bond to someone in another country?

Yes, as long as they have a valid Social Security number or ITIN and can set up a TreasuryDirect account. Non-U.S. citizens can own U.S. savings bonds, but they will need to comply with any tax reporting requirements in their own country as well.

Is there a limit to how many bonds I can give as gifts in one year?

You can purchase up to $10,000 per calendar year in Series EE bonds and $10,000 per calendar year in Series I bonds for each person you give them to. These limits apply to your total purchases, whether for yourself or as gifts.

Can I change my mind and get a refund after I buy a gift bond?

Once a bond is purchased and settled in the recipient's account, you cannot get a refund. However, if you catch the error within one business day, before the bond settles, you may be able to cancel it. After that, the bond belongs to the recipient, and only they can decide to cash it in.