Buy I Bonds
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Series I savings bonds protect you from inflation. With an I bond, you earn both a fixed rate of interest and a rate that changes with inflation. Twice a year, we set the inflation rate for the next 6 months.
This page focuses on buying for yourself or a child whose account is linked to yours. If you are planning to give a savings bond as a gift, also see our page on Giving savings bonds as gifts. You can print a certificate announcing your gift. See our selection of announcement cards.
In any one calendar year, you may buy up to $10,000 in Series EE electronic savings bonds AND up to $10,000 in Series I electronic savings bonds for yourself as owner of the bonds. That is in addition to the amount you can spend on buying savings bonds for a child or as gifts.
For example: If you want to buy $50 Series I savings bonds and you ask your employer to send $25 from each paycheck to your TreasuryDirect account, we issue a $50 bond for you after every other payday. You don't have to think about it again or do anything else. You keep getting more savings bonds automatically until you change or end your Payroll Savings Plan.
We may issue multiple bonds to fill your order. The bonds may be of different denominations. We use $50, $100, $200, $500, and $1,000 bonds. Again, the amount of your purchase can be any multiple of $50, from $50 to $5,000. You need to tell us only the amount. We determine denominations.
On Form 8888, you also specify who will own the bonds. That means, you can give paper savings bonds to yourself or to anyone else (as a gift). If you have enough money in your refund, you can buy multiple bonds and, if you wish, you can give them multiple registrations.
Buy U.S. Series I Savings Bonds with a portion or all of your tax refund for yourself or anyone. Issued by the Department of the Treasury, Series I bonds are low-risk bonds that grow in value for up to 30 years. While you own them they earn interest and protect you from inflation.
Just tell your tax preparer you want to buy savings bonds with part or all of your refund! If you prepare your own return using tax software, the computer program will guide you. If you file a paper return, use Form 8888, Allocation of Refund (Including Bond Purchases)PDF. The instructions explain what you need to do.
Part 2: The IRS will forward your request for savings bonds to the Treasury Retail Securities Site. It will take them up to three weeks to send your bonds to you at the address on your tax return. You can call the Treasury Retail Securities Site at 844-284-2676 to check on the status of your bond issuance.
The interest earned by purchasing and holding savings bonds is subject to federal tax at the time the bonds are redeemed. However, interest earned on savings bonds is not taxable at the state or local level.
You can request the IRS or your state tax department to deposit your tax return directly into your TreasuryDirect account where you can use the funds to purchase savings bonds or marketable Treasury securities. All you need to do is provide TreasuryDirect's routing number and your TreasuryDirect account number in the refund instructions on your tax return.
Note: The three purchase limits above apply separately. That is, in a single calendar year you could buy $10,000 in electronic Series EE bonds, $10,000 in electronic Series I bonds, and $5,000 in paper Series I bonds.
The most important thing to remember about purchasing marketable bills, notes, bonds, Floating Rate Notes, or TIPS is that the limits are set for each auction, not by year. The limit for noncompetitive purchases is $10 million for each security type and term, for each auction. This limit applies regardless of whether you're buying a bill, note, bond, Floating Rate Note, or TIPS, and regardless of what method you use to make the purchase (TreasuryDirect, broker, or dealer).
The education tax exclusion permits qualified taxpayers to exclude from their gross income all or part of the interest paid upon the redemption of eligible savings bonds, when the bond owner pays qualified higher education expenses at an eligible institution.
To qualify for the exclusion, the bonds must be Series EE or Series I savings bonds issued after 1989 in your name, or, if you are married, they may be issued in your name and your spouse's name. Note: A bond bought by a parent and issued in the name of his or her child under age 24 does not qualify for the exclusion by the parent or the child.
If you only look at the rate your savings bonds are earning, they may not seem like a competitive investment at first. But when you factor in all the tax advantages, your bonds are earning more than you think.
If you want to switch from deferred reporting to annual reporting of interest, you must do it for all your savings bonds. You must also report all interest earned up to the year of the change in reporting procedure. If you later wish to change from annual reporting to deferred reporting, either attach to your tax return a statement asking for this change or submit IRS Form 3115 (the fee for the form is waived in this case). See IRS Publication 550 for details.
It's important to register your bonds correctly. Registrations for Series EE and I Bonds, both electronic and paper bonds, can vary, so it's a good idea to find out how to register each type of bond. View information about registrations for EE and I Savings Bonds.
Savings bonds can be registered to trusts in the name of the trustee of a personal trust estate. Personal trust estates are defined in the governing regulations as trust estates established by natural persons in their own right for the benefit of themselves or other natural persons in whole or in part, and common trust funds comprised in whole or in part of such trust estates.
Savings bonds reissued to a personal trust estate are no longer issued in paper form but, instead, are issued as electronic bonds in TreasuryDirect. See information about trust registrations for electronic bonds.
When Series HH or H bonds are reissued to a trust, the new owner must certify that the taxpayer identification number is correct and must not be subject to backup withholding. Certification is accomplished by completing an IRS Form W-9 or a similar certification statement on FS Form 1851 (reissue application).
When Series HH bonds bearing issue dates of October 1989 and after are reissued to a personal trust, a trustee must complete and sign an SF 1199A providing the appropriate direct deposit information for semiannual interest payments.
When savings bonds are registered in the name of a trust, the trustee(s) requests payment. The bonds should be submitted to Treasury Retail Securities Services, PO Box 214, Minneapolis, MN 55480-0214.
Yes, you can. When you file your tax return, you can tell the IRS you want to save part or all of your refund and have the rest sent to your checking account. You can save part or all of your refund by submitting Form 8888, Allocation of Refund (Including Savings Bond Purchases)PDF when you file your return. Follow the instructions on Form 8888 to tell the IRS to make a direct deposit of the amount you designate to an IRA, to buy U.S. savings bonds, to make a direct deposit to a savings or checking account or other savings vehicles, or to request a paper check.
No, you don't need to open an account in advance with the Treasury Department. Complete and file the Form 8888 with your tax return. The IRS will arrange for your U.S. savings bonds to be mailed to you.
No, you don't need to have a bank account to purchase I bonds with your federal tax refund. If you purchase I bonds with your tax refund, you can elect to have any remaining refund amount not used to purchase bonds mailed to you as a paper check.
You can use all or part of your tax refund to purchase I bonds. Your request for bonds must be in increments of $50. Any remaining refund amount not used to purchase bonds will be mailed to you as a paper check or you may elect to have the remaining amount direct deposited into a checking or savings account.
Series I U.S. Savings Bonds are sold under this program. They are a low-risk, liquid savings product that earn interest and provide protection from inflation. Although savings bonds are not marketable in that they cannot be bought or sold in secondary security markets, they can be redeemed for principal and accrued earnings at any time after 12 months. See details below.
You can buy savings bonds in increments of $50. You buy them at face value, meaning if you pay $50 using your refund, you get a $50 savings bond. This calendar year, you can buy up to a total of $5,000 in paper series I savings bonds with your refund. Any unused amount of your refund can be sent to you in a paper check, or you can elect to have the remaining refund direct deposited into an account of your choice.
Example: Bill is entitled to a $2,500 federal income tax refund. He decides to save $1,000 of the refund by buying savings bonds, to save another $1,000 by having the IRS direct deposit that amount to his IRA, and have the IRS direct deposit the remaining $500 to his checking account. Bill gives the IRS these instructions by completing Form 8888 and attaching it to his Form 1040. On the Form 8888, he checks the appropriate checking or savings boxes, gives the IRS the routing and account numbers for his IRA and checking accounts and completes the information specified in the Form 8888 instructions for the bond purchase. Six $50 savings bonds, one $200 savings bond and one $500 savings bond will be mailed to him.
Savings bonds are designed as longer-term investments, and generally cannot be redeemed during the first 12 months after you buy them, unless you live in an area affected by a disaster, such as a flood, fire, hurricane or tornado. Waivers for areas affected by disasters are announced on the TreasuryDirect.gov website. If you redeem a savings bond within the first five years, the three most recent months' interest will be forfeited. After five years, no penalty will apply. 59ce067264