Getting What You Want Out of Life Doesn’t

Have to Mean Putting Your Hard-Earned Money at Risk!

 

U.S. Savings Bonds are a safe, easy way to save money and a solid addition to your investment portfolio. More than 55 million people are taking advantage of Savings Bonds’ competitive rates. Whether you select Treasury’s new I Bond or EE Bond, your money is guaranteed to grow and remain safe into the future. You can check the value of a Savings Bond online using the Savings Bond Calculator. Using Savings Bonds to pay for qualified higher education expenses may allow you to exclude your earnings from federal income taxes. Savings Bonds are also a great way to supplement retirement funds.

 

I Bonds

 

Sold at face value. (You pay $50 for a $50 bond)

 

Offer a real rate of return over and above inflation.

 

Buy as much as $30,000 per year.

 

Series I Bond’s earnings rate reflects a combination of a semiannual inflation rate. The percent change in the Consumer Price Index for All Urban Consumers (CPI-U) over a 6-month period, and a fixed rate set by the Secretary of the Treasury. A Series I Bond’s fixed rate does not change over the life of the bond. The inflation rate is a variable rate that will change throughout the life of the bond. Rates are announced each May and November.

 

The inflation rate is the percent change in the CPI-U over a six-month period ending prior to May 1 and November 1 of each year. For example, the earnings rate announced on May 1 reflects an inflation rate from the previous October to March.

 

Even if the percent change in the CPI-U is negative (deflation), it will be used to calculate the earnings rate. But, if the amount of deflation is more than the fixed rate, the bond will hold its value - the bond’s redemption value will not decline.

 

Earn interest for up to 30 years.

 

Can be redeemed anytime after one year. If redeemed before 5 years, there is a 3-month loss of interest.

 

Exempt from state and local income taxes.

 

Backed by the full faith and credit of the United States.

 

Available in the following denominations: $50 $75 $100 $200 $500 $1,000 $5,000 $10,000.

 

Series EE Bonds

 

Sold at half their face value. (You pay $25 for a $50 bond)

 

Earn rates based on five-year treasury securities.

 

Buy as much as $15,000 per year.

 

New rates announced each May 1st and November 1st. This rate adjustment ensures that your savings always tracks the Treasury bond market. The new rate will be 90% of the average yields on 5-year Treasury securities for the preceding six months.

 

Earn interest for up to 30 years. You can delay the tax consequences by exchanging them for Series HH Savings Bonds for up to 20 more years.

 

Can be redeemed anytime after one year. Bonds redeemed before 5 years are subject to a 3-month interest penalty.

 

Exempt from state and local income taxes.

 

Backed by the full faith and credit of the United States.

 

Available in the following denominations: $50 $75 $100 $200 $500 $1,000 $5,000 $10,000.