Comparing EE Bonds and I Bonds
Treasury currently offers two series of savings bonds: EE and I. You can buy both series in electronic format. You can buy paper Series I bonds with your IRS tax refund.
On this page
|EE Bonds||I Bonds|
|Purchase Price for Paper bonds||Paper EE bonds no longer available.||Paper I bond can be purchased with your IRS tax refund at face value (a $50 bond costs $50)|
(electronic and paper are the same)
|Interest depends on when the EE Bond was issued:
||I Bonds earn a combined rate made up of
|EE Bonds and I Bonds|
|Purchase price||Electronic: Face value
(a $50 bond costs $50)
|Available electronic bonds||Any amount of $25 or more to the penny
For example, electronically, you could buy an EE or an I Bond for $50.23.
|Maximum amount you can buy||$10,000 each calendar year for each Social Security Number.
In any one year for one Social Security Number: You may buy up to $10,000 in electronic EE Bonds.
You may also buy up to $10,000 in electronic I Bonds and up to $5,000 in paper I Bonds with your tax refund.
|Redeeming (cashing in the bond)||After 12 months|
|When interest is earned and compounded||Interest is earned monthly and compounded semiannually up to 30 years.|
|Penalty for cashing in early||Loss of last three months of interest if you redeem the bond during the first five years.
For example, if you redeem the bond after 18 months, you get the first 15 months of interest.
|Income taxes||Federal: Yes
State and Local: No
Tax benefits may be available when you use the money for higher education Using Savings Bonds for Education