Effective December 31, 2011
The U.S. Department of the Treasury will end over-the-counter sales of paper savings bonds on December 31, 2011, including sales through financial institutions and applications mailed directly to the Federal Reserve Bank by customers. This move is expected to save taxpayers an estimated $70 million over the next five years.
Although paper bonds are being discontinued, electronic Series EE and Series I Savings Bonds will remain available for purchase via TreasuryDirect. This secure, web-based system, operated by the Bureau of the Public Debt, has been used by investors since 2002 to purchase savings bonds online.
ANNUAL PURCHASE LIMIT FOR SAVINGS BONDS
The annual purchase limit applying to Series EE and I Savings Bonds is $5,000 (issue price) starting January 2008 for each series and Social Security Number. The limit applies to the first-named co-owner. The $5,000 limit applies to the primary owner of bonds issued in TreasuryDirect.
An individual can purchase up to $20,000 worth of bonds in one calendar year ($5,000 each of EE and I bonds in paper form, and $5,000 of each in a TreasuryDirect account).
Anyone who would like to purchase savings bonds and other Treasury securities through TreasuryDirect can set up an account at www.treasurydirect.gov There is no fee for opening a TreasuryDirect account or purchasing savings bonds and other securities.
Sold at face value and grow with inflation-protected earnings for up to 30
invest from as little as $50 to as much as $30,000 per year. Safe,
I Bonds are backed by faith of the United States Government. Defer
Federal taxes on earnings for up to 30 years and the I Bonds are
exempt from state and local income taxes. Interest
is compounded semiannually and can be turned into cash after six
purchase price of a bond is 50 percent of its face amount; for
example a $100 bond costs $50. Bonds
are available in $50, $75, $100, $200, $500, $1,000, $5,000 and
$10,000 denominations. Bonds
increase in value every month. The
interest you earn on your Series EE bonds is exempt from State and
local taxes. Defer
Federal income tax until you redeem the bonds or they stop earning
interest after 30 years. You
can cash Series EE bonds any time after six months. There is a 3-month
interest penalty if you redeem your bonds before five years.
more detailed information, check out the website
www.treasurydirect.gov or write to Bureau of the Public Debt, Savings Bond Operations Office,
Parkersburg, WV 26106-1328.
Bond Finder & Savings Bond Calculator
It's a new Treasury Department Web
service that makes it simple for people to find out if they have
matured savings bonds. Customer Privacy is protected by
encrypted communications and a follow-up process assures payment or
information is disclosed only to the proper bond owners.