Types of Bonds
U.S. Savings Bonds are backed by the full faith and credit of the United States. These make great gifts for celebrating the birth of a new child, birthdays and special occasions.
Treasury's I Bond
- 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 $5,000 per year
- A fixed rate of return and a variable semiannual inflation rate (based on CPI-U for March and September) are combined
- Interest compounds semiannually for 30 years
- Can be redeemed anytime after 12 months*. (*If redeemed before five 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
Series EE Bond
- Sold at half their face value (you pay $25 for a $50 bond)
- Earn 90% of market rates on five-year Treasury securities
- Buy as much as $5,000 per year
- Bonds inssued after May 2005 earn a fixed rate of return
- Bonds from May 1997 until April 2005 are based on 90% of the six-month averages of five-year Treasury Security yields.
- Earn interest for up to 30 years. (*If redeemed before five years, there is a 3-month loss of interest.)
- Need to redeem a bond? Please check with the U.S. Dept. of Treasury as requirements have changed.
- 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