As of 2026, U.S. savings bonds are still issued by the Treasury, but only in electronic form through TreasuryDirect.gov; paper bonds are no longer sold anywhere, including banks.
How long does it take for a $50 savings bond to mature?
EE bonds issued today reach face value at 20 years and stop earning interest at 30 years.
That $50 EE bond you buy today? It’ll be worth $100 in 20 years—no matter what the fixed 0.10% rate looks like then. After three decades, it stops earning interest entirely. Always double-check your issue date on TreasuryDirect to see the exact timeline for your specific bond.
Are U.S. savings bonds still available?
Yes, but only in electronic form through TreasuryDirect.gov; paper Series EE and I bonds have not been sold since January 1, 2012.
You can grab electronic EE and I bonds in any increment from $25 up on TreasuryDirect. Banks haven’t stocked paper bonds for years now, so if you want one, you’ll need to hop online and buy it yourself.
Are U.S. savings bonds at risk?
No, they are considered risk-free because they are backed by the full faith and credit of the U.S. government.
Your money’s as safe as it gets—no market crash will wipe out your principal. The catch? Those rock-solid returns won’t outpace inflation if prices surge. You trade growth for security, plain and simple.
Are U.S. savings bonds worth keeping?
They may be worth keeping only if they have appreciated significantly or you plan to use them for education tax benefits.
Older paper EE bonds often maxed out years ago or stopped earning interest entirely. If that’s the case, cashing them in and moving the money to a 529 plan or I-Bonds might make more sense—especially if you’re saving for education. Run the numbers on TreasuryDirect’s Savings Bond Calculator before making a move.
Are savings bonds a good investment for grandchildren?
They can be a safe, simple gift that encourages saving, but expect modest growth.
Grandparents love gifting small EE bonds ($25–$100) in a grandchild’s name. The bond doubles in value at 20 years, teaching patience and delayed rewards. But if you’re chasing big returns for college, compare that 0.10% fixed rate to a 529 plan or a low-cost index fund first.
What are the pros and cons of US Savings Bonds?
Pros: government guarantee, state tax-free interest, easy gift option; Cons: low fixed returns, inflation lag, redemption penalties within five years.
| Feature | EE Bond | I Bond |
|---|
| Guarantee | U.S. government | U.S. government |
| Interest rate (2026) | 0.10% fixed | Composite 3.54% (60% fixed, 40% inflation-adjusted) |
| Face-value growth | Reaches twice issue price at 20 years | Grows with inflation |
| Tax-free for education | Yes, if redeemed for qualified expenses | Yes, if redeemed for qualified expenses |
| Redemption penalty | Lose 3 months interest if cashed <5 years | Same |
Can savings bonds lose value?
No, you cannot lose principal because the bonds are backed by the U.S. Treasury.
Even in brutal market crashes, the Treasury guarantees you’ll get your full face value at maturity. The only wiggle room comes from inflation adjustments on I bonds; EE bonds stay locked at their fixed rate, which won’t budge—even when prices spike.
Do EE bonds still double?
Yes, every EE bond issued after May 2021 is guaranteed to reach face value (double the purchase price) at 20 years regardless of the fixed interest rate.
Buy a $50 EE bond today, and in 2046 it’ll be worth $100—no matter how low that 0.10% fixed rate stays. After two decades, it keeps earning that same fixed rate until it shuts off at 30 years.
Can you still buy a savings bond at a bank?
No, banks and credit unions stopped selling paper savings bonds on January 1, 2012.
Head to TreasuryDirect.gov to see if the service is up and running. If TreasuryDirect hits a funding snag, you might need to wait. But you can always buy electronic bonds online and print a gift certificate for the lucky recipient.
Why are US bonds low risk?
They are low risk because they are direct obligations of the U.S. government, which has never defaulted on its debt.
The Treasury promises to pay back every penny, so the only real risk is inflation slowly chewing away at your purchasing power. That safety net comes with some of the lowest yields around, making these bonds best for locking in capital—not growing it.
Why does the United States government issue savings bonds?
The government issues savings bonds to fund its borrowing needs in small denominations while giving citizens a safe, accessible savings tool.
Since 1935, savings bonds have spread government debt ownership wide and taught generations the value of saving. Today, the program lives on—even if paper bonds are a relic of the past. In fact, this concept of encouraging saving has roots in many historical events, such as major economic policies from 1945.
What is the interest rate on United States Savings Bonds?
As of May 2026, EE bonds carry a fixed 0.10% annual rate; I bonds earn a composite 3.54% (60% fixed, 40% inflation-adjusted) every six months.
Rates reset each May and November and stay locked for the bond’s life. Check TreasuryDirect for the latest numbers or stack them up against other Treasury securities like TIPS or Treasury bills.
Is now a good time to cash in savings bonds?
You should generally wait at least five years to avoid the three-month interest penalty.
If your bond’s almost done and you need the cash, cashing it now isn’t a terrible idea. But if it still has years left and you think you can earn better returns elsewhere, holding or swapping it for an I bond might be smarter. Run TreasuryDirect’s calculator to see whether keeping or cashing comes out ahead after taxes.
Are savings bonds worth more over time?
All EE bonds issued today will be worth at least twice their purchase price at 20 years and stop earning interest at 30 years.
Paper EE bonds from before 1983 have already topped out and stopped earning interest. If you’ve got one of those, it’s time to redeem or roll it into a 529 plan. For the best value, hang onto paper EE bonds until they hit 20 years—electronic EE bonds bought today follow the same rule.
How do I avoid taxes when cashing in savings bonds?
Report interest annually on your tax return and pay tax each year, or defer until redemption or final maturity.
Most people defer taxes until they cash the bond, which keeps things simple. But if you use the bond for qualified education expenses and meet the income limits, you can skip federal taxes on the interest entirely under the Education Savings Bond program. Hang onto Form 8815 and your purchase records—you’ll need them later.
