Electronic EE bonds are sold at face value with an annual purchase limit of $30,000. Series I bonds are sold at face value; individuals can purchase a maximum of $60,000 face value per year ($30,000 paper bonds and $30,000 electronic bonds).

What is the difference between HH and EE savings bonds?

Series HH bonds are current income bonds. Series EE bonds are deferred-interest bonds. They build value over time. Series EE bonds purchased after May 2005 earn a fixed rate of interest.

What do I do with mature savings bonds?

If you discover that your savings bonds have matured, you should cash them in and invest the money elsewhere. If you have paper bonds, contact your bank to see if it cashes savings bonds (not all banks do, and some will cash in savings bonds only for customers who have had accounts for at least six months).

What are the different types of US Savings Bonds?

There are a couple of different types of United States Savings Bonds available for purchase including Treasury Bonds, I Savings Bonds, and EE/E Savings Bonds. Treasury Bonds have a 30-year term and pay a fixed rate of interest on a six-month basis until they mature.

Where can I buy series I savings bonds?

Treasury currently offers two series of savings bonds: EE and I. You can buy both EE bonds and I bonds in electronic format. You can buy paper I bonds with your IRS tax refund. Electronic EE and I bonds are sold at face value. Any amount of $25 or more to the penny. For example, you could buy an EE or an I bond for $50.23.

How are savings bonds different from corporate bonds?

Whereas you buy corporate bonds online through a broker, savings bonds can only be issued by banks or building societies. A savings bond is simply a debt security issued by the U.S. Treasury to help pay for government needs. There are two types of U.S. Savings bonds, which are series EE and I bonds.

What’s the interest rate on a savings bond?

Savings bonds are zero-coupon bonds in that they earn interest monthly but do not pay that interest until they mature or are redeemed. The interest compounds semiannually. EE Bonds issued after May 2005 carry a fixed interest rate equal to 90% of the average market yield on five-year Treasuries during the six months before the EE Bond’s issue.