How Do You Buy Bonds
This page focuses on buying for yourself or a child whose account is linked to yours. If you are planning to give a savings bond as a gift, also see our page on Giving savings bonds as gifts. You can print a certificate announcing your gift. See our selection of announcement cards.
how do you buy bonds
In any one calendar year, you may buy up to $10,000 in Series EE electronic savings bonds AND up to $10,000 in Series I electronic savings bonds for yourself as owner of the bonds. That is in addition to the amount you can spend on buying savings bonds for a child or as gifts.
For example: If you want to buy $50 Series I savings bonds and you ask your employer to send $25 from each paycheck to your TreasuryDirect account, we issue a $50 bond for you after every other payday. You don't have to think about it again or do anything else. You keep getting more savings bonds automatically until you change or end your Payroll Savings Plan.
We may issue multiple bonds to fill your order. The bonds may be of different denominations. We use $50, $100, $200, $500, and $1,000 bonds. Again, the amount of your purchase can be any multiple of $50, from $50 to $5,000. You need to tell us only the amount. We determine denominations.
On Form 8888, you also specify who will own the bonds. That means, you can give paper savings bonds to yourself or to anyone else (as a gift). If you have enough money in your refund, you can buy multiple bonds and, if you wish, you can give them multiple registrations.
Yes, you can. When you file your tax return, you can tell the IRS you want to save part or all of your refund and have the rest sent to your checking account. You can save part or all of your refund by submitting Form 8888, Allocation of Refund (Including Savings Bond Purchases)PDF when you file your return. Follow the instructions on Form 8888 to tell the IRS to make a direct deposit of the amount you designate to an IRA, to buy U.S. savings bonds, to make a direct deposit to a savings or checking account or other savings vehicles, or to request a paper check.
No, you don't need to open an account in advance with the Treasury Department. Complete and file the Form 8888 with your tax return. The IRS will arrange for your U.S. savings bonds to be mailed to you.
No, you don't need to have a bank account to purchase I bonds with your federal tax refund. If you purchase I bonds with your tax refund, you can elect to have any remaining refund amount not used to purchase bonds mailed to you as a paper check.
You can use all or part of your tax refund to purchase I bonds. Your request for bonds must be in increments of $50. Any remaining refund amount not used to purchase bonds will be mailed to you as a paper check or you may elect to have the remaining amount direct deposited into a checking or savings account.
Series I U.S. Savings Bonds are sold under this program. They are a low-risk, liquid savings product that earn interest and provide protection from inflation. Although savings bonds are not marketable in that they cannot be bought or sold in secondary security markets, they can be redeemed for principal and accrued earnings at any time after 12 months. See details below.
You can buy savings bonds in increments of $50. You buy them at face value, meaning if you pay $50 using your refund, you get a $50 savings bond. This calendar year, you can buy up to a total of $5,000 in paper series I savings bonds with your refund. Any unused amount of your refund can be sent to you in a paper check, or you can elect to have the remaining refund direct deposited into an account of your choice.
Example: Bill is entitled to a $2,500 federal income tax refund. He decides to save $1,000 of the refund by buying savings bonds, to save another $1,000 by having the IRS direct deposit that amount to his IRA, and have the IRS direct deposit the remaining $500 to his checking account. Bill gives the IRS these instructions by completing Form 8888 and attaching it to his Form 1040. On the Form 8888, he checks the appropriate checking or savings boxes, gives the IRS the routing and account numbers for his IRA and checking accounts and completes the information specified in the Form 8888 instructions for the bond purchase. Six $50 savings bonds, one $200 savings bond and one $500 savings bond will be mailed to him.
Savings bonds are designed as longer-term investments, and generally cannot be redeemed during the first 12 months after you buy them, unless you live in an area affected by a disaster, such as a flood, fire, hurricane or tornado. Waivers for areas affected by disasters are announced on the TreasuryDirect.gov website. If you redeem a savings bond within the first five years, the three most recent months' interest will be forfeited. After five years, no penalty will apply.
Yes. Savings bonds purchased with a tax refund will be issued as paper bond certificates in your name. If you are married and filed a joint return, the savings bonds will be issued in your name and your spouse's name. If you purchase savings bonds for someone else, the bonds will be issued in the name(s) that you listed on Form 8888.
Savings bond interest is exempt from state and local income tax. Savings bond interest is subject to federal income tax; however, taxation can be deferred until redemption, final maturity, or other taxable disposition, whichever occurs first. You also have the option of claiming interest annually for federal income tax purposes. Savings bonds are not exempt from any applicable estate, inheritance, gift or other excise taxes, whether federal or state. Tax benefits also may be available when redemption amounts are used to pay education expenses.
Qualified taxpayers may be able to exclude all or part of the interest earned from eligible savings bonds issued after 1989 when paying qualified higher education expenses. Savings bonds must be issued in the name of a taxpayer age 24 or older at the time of issuance. Married couples must file jointly to be eligible for the exclusion. Other restrictions and income limits apply. See Publication 970 for more information.
The Bureau of the Fiscal Service is authorized to replace lost, stolen or destroyed savings bonds. You can file a claim by writing to: Treasury Retail Securities Services, PO Box 214, Minneapolis, MN 55480-0214, completing FS Form 1048PDF. You should keep records of your savings bond serial numbers, issue dates, and social security or taxpayer identification numbers in a safe place. This information will help speed up the replacement process.
Your savings bonds are ordered after the IRS completes processing your tax return. Once ordered, it may take up to three weeks for your savings bonds to arrive in the mail. If you're having a portion of your refund deposited directly into your bank account, you may receive your refund before your savings bonds arrive by mail.
The first step is to check the status of your refund by going to the Where's My Refund feature on IRS.gov or calling 800-829-1954. You can generally get information about your refund 72 hours after the IRS acknowledges receipt of your e-filed return, or three to four weeks after mailing a paper return. If the IRS has processed your refund and placed the order for your savings bonds, you will need to contact Treasury Retail Securities Services at 844-284-2676 to inquire about the status of your savings bonds.
Buy U.S. Series I Savings Bonds with a portion or all of your tax refund for yourself or anyone. Issued by the Department of the Treasury, Series I bonds are low-risk bonds that grow in value for up to 30 years. While you own them they earn interest and protect you from inflation.
Just tell your tax preparer you want to buy savings bonds with part or all of your refund! If you prepare your own return using tax software, the computer program will guide you. If you file a paper return, use Form 8888, Allocation of Refund (Including Bond Purchases)PDF. The instructions explain what you need to do.
Part 2: The IRS will forward your request for savings bonds to the Treasury Retail Securities Site. It will take them up to three weeks to send your bonds to you at the address on your tax return. You can call the Treasury Retail Securities Site at 844-284-2676 to check on the status of your bond issuance.
The interest earned by purchasing and holding savings bonds is subject to federal tax at the time the bonds are redeemed. However, interest earned on savings bonds is not taxable at the state or local level.
These bonds are typically high-quality and very liquid. Most agency bonds are taxable at the federal and state level. Some are fully backed by the U.S. government, making their credit risk lower than other types of bonds.
These bonds are issued by companies, and their credit risk ranges over the whole spectrum. Interest from these bonds is taxable at both the federal and state levels. Because these bonds aren't as safe as government bonds, their yields are generally higher.
Between 8 June 2016 and 19 December 2018 the Eurosystem conducted net purchases of corporate sector bonds under the corporate sector purchase programme (CSPP). From January to October 2019, the Eurosystem only reinvested the principal payments from maturing securities held in the CSPP portfolio. Purchases of securities under the CSPP were then restarted on 1 November 2019 and continued until the end of June 2022. Between July 2022 and February 2023, the Eurosystem aimed to fully reinvest the principal payments from maturing securities. From March 2023 the Eurosystem only partially reinvests the principal payments from maturing CSPP securities.
Since December 2018 government bonds and recognised agencies make up around 90% of the total Eurosystem portfolio, while securities issued by international organisations and multilateral development banks account for around 10%.
Between 20 October 2014 and 19 December 2018 the Eurosystem conducted net purchases of covered bonds under a third covered bond purchase programme (CBPP3). From January to October 2019 the Eurosystem only reinvested the principal payments from maturing securities held in the CBPP3 portfolio. Purchases of securities under the CBPP3 were restarted on 1 November 2019 and continued until the end of June 2022. Between July 2022 and February 2023 the Eurosystem aimed to fully reinvest the principal payments from maturing securities. From March 2023 the Eurosystem only partially reinvests the principal payments from maturing CBPP3 securities. 041b061a72