Series I Savings Bonds
Series I savings bonds are a low-risk savings product. While you own them they earn interest and protect you from inflation. You may purchase electronic I bonds via TreasuryDirect or paper I bonds with your IRS tax refund. As a TreasuryDirect account holder, you can purchase, manage, and redeem I bonds directly from your web browser.
- Purchase I bonds
- Learn more in I Savings Bonds in Depth
- Convert your paper savings bonds to electronic
- Compare I bonds with TIPS
Use I bonds to:
- Finance education
- Supplement retirement income
- Give as a gift
|Current Rate:||1.64% through April 30, 2016|
|Minimum purchase:||$50 for a $50 I bond when purchasing
paper bonds with your IRS tax refund
$25 for a $25 I bond when purchased electronically via TreasuryDirect
(per calendar year):
|$10,000 in TreasuryDirect and $5,000 in paper bonds purchased with IRS tax refunds|
|Denominations:||Paper bonds with your tax refund: $50, $100, $200, $500, $1,000, $5,000
Electronic bonds via TreasuryDirect: purchase to the penny for $25 or more
|Issue Method:||Paper bonds with your tax refund or electronic issue in TreasuryDirect accounts|
Rates & Terms
- I bonds have an annual interest rate derived from a fixed rate and a semiannual inflation rate.
- Interest, if any, 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.
- 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
- Savings bonds are exempt from taxation by any State or political subdivision of a State, except for estate or inheritance 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?