How to Invest in U.S. Savings Bonds

Investing in U.S. savings bonds is a simple and easy way to put your money to work and begin saving. This guide to investing in U.S. savings bonds features in-depth information on how savings bonds work, the Series EE savings bonds, ​Series I savings bonds, and other products issued by the United States Treasury Department. It will explain tax benefits, where to purchase bonds, how to find out the interest rate you are earning on your money, and much more.

The History of U.S. Savings Bonds

United States savings bonds of varying amounts
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From the time they were introduced, U.S. savings bonds have proven to be one of the most popular investments thanks to the government's guarantee that you will never lose money.

Should Savings Bonds Be in Your Portfolio?

You may have an image of savings bonds as being nothing more than stodgy investments given by older relatives on birthdays, holidays, and special occasions. Nothing could be further from the truth. In fact, over the past decade, savings bonds have crushed stocks and real estate, all backed by a promise that you would never lose money. In fact, over the past decade, savings bonds outperformed stocks and real estate on a risk-adjusted basis. That's impressive.

Guide to Investing in Series I Savings Bonds

Series I savings bonds are fantastic in that they combine a guaranteed fixed rate of return with an inflation adjustment so that you won't ever lose purchasing power if prices rise. On top of this, the United States government guarantees that they will never lose value and won't charge you a penny in fees when you place your savings bond order!

Guide to Investing in Series EE Savings Bonds

The Series EE savings bond is probably the one with which you are most familiar. In fact, it could very well be thought of as the grandfather of most modern savings bonds. It has some of the great features of the Series I bonds but investing in them, including how the face value is calculated, is very, very different.

Series HH Savings Bonds

If you or a family member used to invest in savings bonds, you may have Series HH savings bonds still in your portfolio. Don't cash them in right away until you've read this special! They are special because you can no longer get them and they regularly generate cash income that you can live on or use to pay your bills.

What Are the Savings Bonds Tax Traps I Should Avoid?

How you fill out the paperwork the first time you invest in savings bonds could have big tax implications for you and your family down the road. In fact, if you do it wrong, it could cost you tens of thousands of dollars in taxes that could have been avoided.

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  1. TreasuryDirect. "Treasury Bills."

  2. TreasuryDirect. "Series I Savings Bonds FAQs."

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