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Can I Still Buy Savings Bonds at a Bank?

Published in Savings Bonds Purchase 3 mins read

No, you can no longer purchase paper savings bonds directly at banks or other financial institutions. The way savings bonds are bought has shifted significantly, primarily to an electronic format.

The Shift to Electronic Savings Bonds

Since January 1, 2012, the U.S. Department of the Treasury stopped selling paper savings bonds through banks and other financial institutions. This change was part of a broader initiative to move towards more efficient, secure, and environmentally friendly electronic transactions. Therefore, if you are looking to acquire new savings bonds today, your primary method of purchase will be online.

Where to Buy Savings Bonds Now

Today, the easiest and most common way to buy savings bonds is through TreasuryDirect, the U.S. Department of the Treasury's official online platform. This platform allows individuals to directly purchase and manage various Treasury securities, including both Series EE and Series I savings bonds, entirely in electronic form.

Understanding Different Types of Savings Bonds and Their Purchase Methods

When considering savings bonds, it's important to differentiate between the two main types currently available and their specific purchase methods:

  • Series EE Bonds: These bonds are now available exclusively in electronic form via TreasuryDirect.gov. They typically earn a fixed rate of interest for their full 30-year term.
  • Series I Bonds: While primarily available electronically through TreasuryDirect, there is a unique exception for these bonds. You can still purchase paper Series I bonds by choosing to receive them as part of your federal income tax refund. This is the only way to obtain a physical savings bond today. Series I bonds offer an interest rate that adjusts with inflation, providing a hedge against rising prices.

Key Takeaways for Buying Savings Bonds

  • No Bank Sales: Banks and other financial institutions no longer sell savings bonds directly.
  • Electronic is Standard: The vast majority of savings bond purchases are now electronic through the secure TreasuryDirect website.
  • Tax Refund Exception: The only way to get a paper savings bond is to purchase a Series I bond using your federal income tax refund.

How to Purchase Electronic Savings Bonds through TreasuryDirect

To buy electronic savings bonds, you will need to set up an account on the TreasuryDirect website. The process is straightforward and typically involves:

  1. Opening an Account: You'll provide your personal information, including your Social Security Number and bank account details, which will be used for funding your purchases and receiving redemption payments.
  2. Funding Your Purchase: You can link your existing bank account to your TreasuryDirect account to easily transfer funds for your bond purchases.
  3. Choosing Your Bond: Select between Series EE or Series I bonds and specify the purchase amount, starting from $25.
  4. Managing Your Bonds: Your electronic bonds are held securely in your TreasuryDirect account. From here, you can view balances, track interest earned, and redeem your bonds when they become eligible (typically after one year, though a penalty applies if redeemed before five years).

Savings Bond Purchase Methods at a Glance

Feature Current Electronic Purchase (TreasuryDirect) Current Paper Purchase (Tax Refund) Former Paper Purchase (Pre-2012)
Availability TreasuryDirect.gov IRS Tax Refund Banks, Financial Institutions
Bond Types Series EE & Series I Series I Only Series EE & Series I
Physical Form No Yes Yes
Date Implemented January 1, 2012 January 1, 2012 Before January 1, 2012
Minimum Purchase $25 $50 $50