Most banks no longer sell savings bonds in person

You cannot walk into most banks and buy a savings bond over the counter anymore. The U.S. Treasury stopped allowing banks to sell paper savings bonds in 2011. If a bank tells you it sells savings bonds, it is either mistaken about its own services or referring to something else entirely.

The only way to buy U.S. savings bonds now is directly from the Treasury through TreasuryDirect, which is the government's online platform. This is actually simpler than the old bank route — you do not need to visit a branch, and you can buy bonds from home using a computer or phone.

Key Takeaways

  • Banks have not sold savings bonds in person since 2011; all new bond purchases go through TreasuryDirect online.
  • You need a Social Security number, a valid email address, and a U.S. bank account to open a TreasuryDirect account.
  • Series EE and Series I bonds are the two types available to individual buyers, and you can buy them in amounts as small as $25.
  • Money moves from your bank account to your TreasuryDirect account, then into the bonds you purchase — no physical certificates arrive in the mail.

How to buy bonds through TreasuryDirect

Go to TreasuryDirect.gov and create an account. You will need your Social Security number, a valid email address, and a U.S. bank account. The account setup takes about 15 minutes and requires you to verify your identity — the Treasury will ask questions only you would know the answer to, based on your credit history.

Once your account is open, you link a bank account to it. This is the account the Treasury will pull money from when you buy bonds. You can then purchase bonds in amounts starting at $25. The bonds are held electronically in your TreasuryDirect account — you do not receive paper certificates in the mail.

The entire process is free. The Treasury does not charge a fee to open an account, buy bonds, or hold them. If you ever need to cash a bond, you do that through TreasuryDirect as well, and the money goes back to the bank account you linked.

What types of bonds you can buy online

Two types of savings bonds are available to individual buyers through TreasuryDirect: Series EE bonds and Series I bonds.

Series EE bonds earn a fixed interest rate set by the Treasury every six months. The rate applies to all EE bonds bought during that six-month period. You can hold an EE bond for up to 30 years, though you can cash it in after one year (though you lose the last three months of interest if you cash it before five years have passed).

Series I bonds earn interest in two parts: a fixed rate plus an inflation rate that changes every six months based on the Consumer Price Index. I bonds are designed to protect your money from losing buying power when prices rise. Like EE bonds, you can hold them for up to 30 years and cash them after one year, with the same three-month interest penalty if you cash before five years.

Why your bank might mention savings bonds anyway

Some banks still offer Treasury products through their own websites or apps, but they are acting as a middleman to TreasuryDirect. You are not actually buying from the bank — the bank is directing you to TreasuryDirect or processing your order through it. The bank may charge a fee for this service, which is why buying directly through TreasuryDirect.gov is cheaper.

A few banks also sell brokered bonds — older savings bonds that someone else originally bought and is now reselling. These are not new bonds from the Treasury. Brokered bonds have different rules and may carry fees, so they are worth understanding before you buy one.

What you need before you start

Have your Social Security number ready. You will also need a valid email address — the Treasury uses this to send you account notifications and to verify your identity during setup. Make sure it is an email you check regularly.

You need a U.S. bank account in your name. The account can be checking or savings, and it does not have to be at a large bank — credit unions and smaller regional banks work fine. The Treasury will make two small deposits to verify the account is real, then you authorize those amounts to confirm you own the account.

You must be a U.S. citizen or resident alien with a valid Social Security number. If you are buying bonds for a child, you can open a TreasuryDirect account in the child's name, but you will be the account manager until the child turns 18.

How much you can buy each year

The Treasury limits how many bonds you can buy in a calendar year. For Series EE bonds, the limit is $10,000 per person per calendar year. For Series I bonds, the limit is also $10,000 per person per calendar year. These are separate limits, so you could buy $10,000 in EE bonds and $10,000 in I bonds in the same year.

There is one exception: if you get a federal tax refund, you can use it to buy up to an additional $5,000 in Series I bonds. This is done through your tax return when you file, not through TreasuryDirect.

The difference between buying online and what banks used to do

When banks sold savings bonds, you got a paper certificate with a serial number. You kept it in a safe place, and if you lost it, you had to file a claim with the Treasury to replace it. The process was slow and sometimes required proof of loss.

With TreasuryDirect, your bonds exist only in your online account. There is no physical certificate to lose, steal, or damage. Your account is protected by a password and a login process, similar to online banking. If someone gets into your account, you can contact TreasuryDirect to lock it down. This is actually safer than keeping paper certificates.

The trade-off is that you have to be comfortable with online accounts. If you have never used online banking or are not comfortable with it, TreasuryDirect may feel unfamiliar at first. But the process is straightforward, and the Treasury's website walks you through each step.

Frequently Asked Questions

Can I buy savings bonds for someone else as a gift?

You can buy bonds in someone else's name if you have their Social Security number and permission, but you cannot buy them as a surprise gift. The person whose name is on the account must be involved in creating the TreasuryDirect account. You can, however, buy bonds in your own name and give them to someone later, or help someone set up their own account and buy bonds themselves.

What happens if I forget my TreasuryDirect password?

You can reset it through the TreasuryDirect website using your email address and answers to security questions. If you cannot remember the answers, you can contact TreasuryDirect customer service by phone or mail, and they will help you regain access to your account. Keep your email address current so you receive password reset instructions.

Do I have to keep bonds until they mature?

No. You can cash in a bond anytime after you have owned it for one year. If you cash it before five years, you lose the last three months of interest. After five years, you can cash it without any interest penalty. You can hold bonds for up to 30 years, but you are never required to.

Can I buy savings bonds through my employer?

Some employers offer payroll deduction programs for savings bonds, but this is less common than it used to be. If your employer offers it, the money comes out of your paycheck and goes into a TreasuryDirect account in your name. You still need to set up a TreasuryDirect account first. Ask your human resources or payroll department whether this option is available.

Is TreasuryDirect safe to use?

TreasuryDirect is run by the U.S. Treasury and uses the same security standards as federal government websites. Your account is password-protected, and the Treasury requires identity verification during setup. Your bonds are backed by the full faith and credit of the U.S. government, meaning they are as safe as any investment can be.