I and EE Savings Bond Comparison

As of January 1, 2012, paper savings bonds are no longer sold at financial institutions.  This action supports Treasury’s goal to increase the number of electronic transactions with citizens and businesses. See the press release.

We currently offer two series of savings bonds for purchase: EE and I. Both series are offered in electronic format and I bonds are offered in paper format through IRS tax refunds. Here is a comparison of I Bonds and EE Bonds:

The following chart applies to electronic bonds purchased through TreasuryDirect. See notations below for paper bond differences.

For more information, see the Savings Bonds Investor Guide

  I Bonds EE Bonds
Denominations Any amount of $25 or more, including penny increments* Any amount of $25 or more, including penny increments*
Purchase Price Face value** Face value**
Purchase Limit $10,000 per Social Security Number*** $10,000 per Social Security Number
Interest Earnings
  • 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
  • Bonds issued after May 2005 earn a fixed rate of return.
  • Variable rates for bonds bought from May 1997 through April 2005 are based on 90% of the 6-month averages of 5-year Treasury Securities yields.
  • Interest compounds semiannually for 30 years.
Redemption Can be redeemed after 12 months Can be redeemed after 12 months
Early Redemption Penalties 3-month interest penalty if redeemed during the first 5 years 3-month interest penalty if redeemed during the first 5 years
Taxes
  • Exempt from state and local income tax
  • TreasuryDirect reports interest earnings; an online 1099-INT shows interest reportable for tax purposes.
  • Tax benefits available when used for education expenses
  • Exempt from state and local income tax
  • TreasuryDirect reports interest earnings; an online 1099-INT shows interest reportable for tax purposes.
  • Tax benefits available when used for education expenses

On paper savings bonds issued or replaced on or after August 1, 2006, the first five digits of your Social Security number will be masked and replaced with asterisks. This is being done to protect your privacy and to prevent the information from being used for identity theft.

Paper savings bonds can no longer be purchased at financial institutions after January 1, 2012, but paper I Bonds are available using your IRS tax refund. Treasury phased out the issuance of paper savings bonds through traditional employer-sponsored payroll savings plans as of January 1, 2011. See our FAQ.

** Paper I Bonds are offered in 7 denominations- $50, $75, $100, $200, $500, $1,000, $5,000. They are purchased for their face value (for example, a $100 I bond costs $100).

***You can purchase an additional $5,000 in paper I Bonds per Social Security number using your IRS tax refund.