Savings Bond Information

You can find savings bond information on the Internet at Treasury Direct. You can also learn much information about a particular type of savings bond from your local bank. Right now there is the Series EE Savings Bond and the Series I Savings Bond. Since September 1, 2004 you can no longer get the HH bonds. Series EE Savings Bonds are also known as Patriot Bonds. The Series EE Bond and the Series I Bond are fairly similar, except that the EE bond has no inflation component.

Series E Savings Bonds were known as the "War Bond" and this bond was introduced in May of 1941. The Series E bond could no longer be purchased after in June of 1980; but there are still Series E Bonds earning interest at this time. Series EE Bonds replaced the former war bonds, and in December of 2001 after the 9/11 attacks the words "Patriot Bond" was stamped them. Series EE Bonds are purchased at half value, if you get paper bonds. You can buy them online for full value. When the EE bond matures in 20 years, and will double in value. For the remaining 10 years until final maturity the EE bond will continue to earn interest.

Series I Bonds are protected from inflation. Even if the economy deflates, you will get face value for your bond when you redeem it. Series I Savings Bonds are bought at face value, and will double in value when they mature. The I Savings Bonds mature in 20 years, and have a final maturity at the 30th year. You can also buy Series I bonds online at Treasury Direct. If you buy I Bonds electronically, you can spend less than $50. You can buy an I Bond at Treasury Direct for as little as $25.

Series EE and Series I Bonds are low risk investments. If you have an account with Treasury Direct, you can sign up with the Smart Exchange website and convert your paper bonds into electronic securities. You can purchase $5,000 in paper EE and I bonds each calendar year. You can also purchase another $5,000 per calendar year of electronic bonds. There is no limit on how many bonds you can own. You can purchase the limit for paper bonds and electronic securities each year, if that is what you want to do. These bonds are a very solid long term investment, and are good to save for your retirement. If you start buying bonds when you are young, you will have more than doubled your money by the time the bonds reach their final maturity at 30 years. They double their value at maturity in 20 years, and they accrue more interest for the final 10 years to final maturity.