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The $100 I Bond
The $100 I Bond featuring Dr. Martin Luther King, Jr.

 

The $100 Series EE
The $100 Series EE

U.S. Savings Bonds are Treasury Department securities backed by the full faith and credit of the United States.

They are the world's most widely held savings tools with over 55 million owners.

You can buy Savings Bonds in two series--I and EE. They share a variety of features and also have differences that give you a choice of ways to save.

   
The I Bond    

The I Bond protects your savings from inflation.

It earns a combination of two rates: a fixed amount and an inflation adjustment.

The adjustment is based on the Consumer Price Index to ensure that inflation does not erode the value of your savings.

I Bonds grow over and above the rate of inflation, and let your savings maintain their purchasing power.

The Treasury Department sets the I Bond rates each May and November.

The fixed rate at which you buy an I Bond remains the same, while the inflation adjustment tracks the CPI. This ability to keep up with inflation is key to the I Bond's worth.

I Bonds are also unique because they carry the images of eight Americans from the modern age who made great contributions to the nation and represent its cultural diversity.

They are: Helen Keller; Dr. Hector P. Garcia; Dr. Martin Luther King, Jr.; Chief Joseph; General George Marshall; Albert Einstein; Marian Anderson; and Spark Matsunaga.

For more information on the I Bond, talk to your organization's Savings Bonds contact or see the online information statement.

 
   
The Series EE Savings Bond  
 

Series EE Savings Bonds earn 90 percent of the average yield on five-year Treasury securities.

Since the Treasury adjusts this rate every May and November, your earnings closely track market trends.

With Series EE, you can be sure that all of your principal and earned interest is safe.

Your earnings are also guaranteed. If market conditions prevent new issues of Series EE bonds from doubling in value within 20 years, the Treasury Department will make a one-time adjustment to double the purchase price.

Series EEs can earn tax-deferred interest for up to 30 years.

For more information about Series EE Savings Bonds, talk to your organization's Savings Bonds contact or see the online information statement.

     
Compare the two series
 
Series EE Savings Bond
I Bond
   
Purchasing
Issued at half of face value ($100 EE Bonds cost $50) Issued at full face value ($100 I Bonds costs $100)
   
Limit of $15,000 issue price ($30,000 face value) annual purchase per Social Security Number

Limit of $30,000 annual purchase per Social Security Number
Interest
Calculated as 90% of 6-month averages of 5-year Treasury Securities yields Calculated as an earning of a fixed rate of return and a semiannual inflation rate based on CPI-U
   
Guaranteed to double in value in 20 years; initial savings and all earnings are protected No guaranteed level of earnings, but initial savings and previously earned interest is protected
   
Increases in value monthly and compound semiannually. Interest is paid when the bond is redeemed Generally increases in value monthly and interest compounds semiannually (in periods of deflation, bond value could remain unchanged). Interest is paid when the bond is redeemed
 
 
 
 
 
 
 
 
 
   
Common features

Offered in eight denominations
$50, $75, $100, $200, $500, $1,000, $5,000, and $10,000

New rates announced every May 1 and November 1

Earn interest for up to 30 years.

Bonds issued in February 2003 or later can be redeemed after 12 months. Bonds issued earlier can be redeemed after first 6 months.

A 3-month interest penalty applies to bonds redeemed during the first 5 years.

Interest is exempt from state an local income taxes, and federal income tax can be deferred until your Savings Bonds are redeemed, or 30-years-old, whichever comes first.

Eligible for tax benefits upon redemption when used for qualified education expenses.