Series I Savings Bonds Information

Series I Bonds are considered a low-risk, liquid savings product. While you own them they earn interest and protect you from inflation. You may purchase I Bonds through Treasury Direct, at most local financial institutions or through payroll deduction. If you are a Treasury Direct account holder, you can purchase, manage, and redeem I Bonds directly from the Internet.

If you buy Paper I Bonds:

Sold at face value; i.e., you pay $50 for a $50 bond.

Purchased in denominations of $50, $75, $100, $200, $500, $1,000, and $5,000.

$5,000 maximum purchase in one calendar year.

Issued as paper bond certificates.

If you buy I Bonds through Treasury Direct:

Sold at face value; you pay $50 for a $50 bond.

Purchased in amounts of $25 or more, to the penny.

$5,000 maximum purchase in one calendar year.

Issued electronically to your designated account.

You can cash your Series I bonds anytime after 12 months. You receive the original purchase price plus interest earnings. I Bonds are meant to be longer-term investments; if you redeem an I Bond within the first 5 years, you'll lose your last 3 months interest. For example, if you redeem an I Bond after 18 months, you'll receive the first 15 months of interest.

I Bonds increase in value on the first day of each month, and interest is compounded semiannually based on each I Bond's issue date. An I Bond's issue date is the month and year in which an I Bond issuing agent receives the full issue price.

What is the difference between I Bonds and EE Bonds?

The largest most significant difference between the I Bonds and EE Bonds is the rate you receive on your bonds. Rates for EE Bonds are calculated as 90% of 6-month averages of 5-year Treasury Securities market yields, while rates for I Bonds are calculated by combining fixed rates of return and semi-annual inflation rates based on the CPI-U.