The Ins, Outs, and All-Arounds of US Savings Bond

Although they wax and wane in popularity over the years, bonds remain a core portfolio component for many investors.

The returns on savings bonds don’t always measure up to those of riskier securities, but they offer far more than their cash return alone.    

Series EE Savings Bond

Series EE bonds last for 30 years. They have a guaranteed fixed interest rate for the first 20 of those 30 years. During the final ten years of the term, the interest rate on EE bonds may change but won’t necessarily do so.

Series I Savings Bond

The most significant difference between EE and I bonds is how they earn interest. While EE bonds earn a fixed rate for the first 20 years, I bonds earn variable interest rates tied to inflation.

What Are Savings Bonds Worth?

If you already own savings bonds and want to find their present value, the answer will depend on whether they are paper or electronic. 

How to Buy Savings Bond

Buying electronic savings bonds could not be much simpler. First, you must create a TreasuryDirect account if you don’t have one. Once you access your account, you can buy EE or I bonds through their BuyDirect option.