Savings Bond

August 25, 2024 Fixed Income

A U.S. savings bond is a nonmarketable Treasury security for retail savers, with interest, redemption, and tax rules set by Treasury.

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A savings bond is a nonmarketable U.S. Treasury security issued for retail savers. Unlike a marketable Treasury note or bond, a savings bond is not traded in the secondary market; the owner generally buys, holds, values, and redeems it under TreasuryDirect rules.

Key Takeaways

The U.S. Treasury currently sells electronic Series EE Bonds and Series I Bonds.
Older paper series, including Series E Bonds, have different valuation and redemption rules.
Savings bonds can have tax deferral features, but federal tax, education exclusions, and ownership rules depend on the holder’s facts.
Savings bonds are backed by the U.S. government, but they are not the same as cash because redemption timing and interest penalties can apply.

How Savings Bonds Differ From Marketable Treasuries

Feature	U.S. Savings Bond	Marketable Treasury Security
Marketability	Redeemed through Treasury rules, not traded.	Can generally be sold before maturity at market price.
Buyer focus	Retail savers.	Retail and institutional investors.
Value tracking	TreasuryDirect or the paper bond calculator.	Market price, yield, and auction data.
Interest access	Depends on series and redemption rules.	Coupon or discount mechanics depend on the security type.
Main review point	Series, issue date, owner, redemption eligibility, tax treatment.	Yield, duration, price, maturity, and market liquidity.

Common Savings Bond Series

Series	Status	Main Point
Series EE	Currently issued electronically.	Fixed-rate savings bond with Treasury-specific long-horizon rules.
Series I	Currently issued electronically.	Composite rate combines fixed and inflation-linked components.
Series E	Discontinued.	Historical paper savings bond series; no longer earns interest.
Series HH	Discontinued.	Paper current-income bond; all HH bonds have reached final maturity.

Practical Example

A family finds paper savings bonds in a safe deposit box. The first useful step is not estimating a market yield; it is identifying the series, issue date, denomination, owner, and whether the bond still earns interest. Treasury’s paper savings bond calculator or TreasuryDirect account records are the source to verify value and maturity status.

Common Mistakes

Buying a paper bond from another person or online marketplace and assuming ownership transfers.
Treating savings bonds as immediately available cash.
Assuming all historical savings bond series still earn interest.
Comparing an EE bond, I bond, and marketable Treasury bond only by headline rate.
Ignoring tax reporting, beneficiary, co-owner, and education-exclusion rules.

Public Source Checks

TreasuryDirect savings bonds overview explains current EE and I savings bond programs.
TreasuryDirect buying savings bonds explains how current electronic EE and I bonds are purchased.
TreasuryDirect savings bond calculator helps value paper EE, E, I, and savings notes.
TreasuryDirect cashing old bonds explains old series that no longer earn interest.

Series EE Bond: Current fixed-rate savings bond series.
Series I Bond: Current inflation-linked savings bond series.
Series E Bond: Historical savings bond series.
Series HH Bond: Discontinued current-income savings bond series.
Treasury Bond: Marketable Treasury debt, not a savings bond.

FAQs

Can I buy U.S. savings bonds from another person?

No. TreasuryDirect warns that U.S. savings bonds can be bought only from the U.S. government; buying a bond from someone else does not transfer ownership.

Which savings bonds can be bought today?

Treasury currently sells Series EE and Series I savings bonds. Current rates and purchase rules should be checked directly on TreasuryDirect.

Revised on Sunday, June 21, 2026

Series E Bond

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