Windward Private Wealth Management

Windward Private Wealth Management

SearchClient LoginContact Us
  • What We Do
    • Your Goals
    • Your Retirement Income
    • Your Investments
    • Your Taxes
    • Your Legacy
  • Who We Are
    • Blake D. Harris
    • Brad J. Harrison
    • Brandy K. Ward
    • Caitlin M. Ryser
    • Darrell R. Tierney
    • Drew S. Osborne
    • Emily Tierney Petty
    • Kathy M. Washburn
    • Nicholas P. Hartley
  • Windward Passages

U.S. Savings Bonds

Home » Windward Passages » U.S. Savings Bonds

U.S. Savings Bonds

Posted on: May 26, 2022

Many people had their first experience with saving for the future as children when they received a U.S. savings bond as a gift. Savings bonds are issued by the U.S. Treasury Department. However, unlike Treasury bills, notes, and bonds, they are not traded on the open market, and are sold almost exclusively to individuals.

EE bonds

EE bonds issued on or after May 1, 2005 earn a fixed interest rate; the rate for new issues is set every six months. (EE bonds purchased between May 1997 and April 2005 pay a variable interest rate based on average current yields for 5-year Treasury securities.) An EE bond continues to earn interest as long as you hold it (up to 30 years). However, the interest isn’t paid to you until you cash in the bond. An EE bond can be cashed in any time after 1 year, though if you redeem it within the first 5 years, you’ll forfeit the most recent 3 months of interest. There is a $10,000 limit on EE purchases in a single calendar year.

I bonds

Introduced in 1998, I-bonds offer some protection against inflation. Earnings on an I-bond are calculated by combining a fixed rate of return that is set when the bond is issued, and a semi-annual inflation rate that changes twice a year and is based on the Consumer Price Index (CPI). I-bonds are sold at face value, and the interest is paid when the bond is redeemed. As with EE bonds, if you redeem an I-bond within the first 5 years, you’ll lost the most recent 3 months of interest; after 5 years, there is no penalty for redemption. The same annual limits on purchases of EE bonds apply separately to I bonds. In other words, you may purchase a total of $10,000 annually in both EE and I bonds, for an annual total of $20,000 for the two types combined.

Are there other types of savings bonds?

There also are other types of savings bonds, but they can no longer be purchased, though they still pay interest to savers who already own them.

  • E bonds were replaced by EE bonds in 1982 but function in much the same way.
  • HH bonds (and H bonds, their predecessors) pay a fixed interest rate every 6 months for either 20 or 30 years, depending on when the bond was issued. (10 years after the date of issue, the interest rate on an HH or H bond may change to the most recent HH bond interest rate). A maturing HH or H bond can no longer be reinvested into another HH bond.
  • U.S. Individual Retirement Bonds and U.S. Retirement Plan Bonds also are no longer issued but continue to earn interest, which is added to the face value of the bond when it is redeemed. Retirement Plan Bonds can be redeemed once the owner reaches age 59½, and can be rolled over into an existing IRA; they mature 5 years after the owner’s death. Individual Retirement Bonds cease to pay interest after the owner reaches age 70½, or 5 years after the owner dies, whichever is earlier.

What if my bond’s maturity date has already passed?

Once a bond has reached its final maturity date, it no longer pays any interest. You should redeem it at a bank or other financial institution, and use or reinvest the proceeds.

Older bond series — A, B, C, D, F, G, J, K bonds and U.S. Savings Notes (also called Freedom Shares) issued before 1970 — have all passed their final maturity dates and no longer pay any interest. If you or an older relative still has any bonds in these series, they should be redeemed.

How can I buy savings bonds?

Savings bonds may be purchased in electronic form online directly from the Treasury Department at www.treasurydirect.gov. Savings bonds are no longer available in paper form, though existing paper bonds can still be redeemed at financial institutions. Electronic savings bonds can be purchased in $25 increments, up to $10,000 in a single calendar year. You also can exchange paper savings bond certificates for electronic securities.

 

Broadridge Investor Communication Solutions, Inc. Copyright 2022

This content is provided by Windward Private Wealth Management Inc. (“Windward” or the “Firm”) for informational purposes only. Investing involves the risk of loss and investors should be prepared to bear potential losses. No portion of this blog is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax or legal advice. Certain information contained in the individual blog posts will be derived from sources that Windward believes to be reliable; however, the Firm does not guarantee the accuracy or timeliness of such information and assumes no liability for any resulting damages.

Windward is an SEC registered investment adviser. The Firm may only provide services in those states in which it is notice filed or qualifies for a corresponding exemption from such requirements. For information about Windward’s registration status and business operations, please consult the Firm’s Form ADV disclosure documents, the most recent versions of which are available on the SEC’s Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov.

Filed Under: Building Wealth, Financially Independent, Investment Planning, Recent Posts, Retirement Savings & Income Planning

Subscribe

Windward Passages

Sign up here to get weekly financial insights delivered to your inbox

  • This field is for validation purposes and should be left unchanged.

Recent Posts

  • 529 Plan Distribution Rules May 29, 2025
  • Updating an Estate Plan May 15, 2025
  • Dormant 401(k) April 18, 2025
  • Reviewing Tax Returns While Retired April 4, 2025
  • Reviewing Tax Returns While Working March 28, 2025
  • Qualified Charitable Distributions March 14, 2025
  • Cash Flow Considerations February 28, 2025
  • Tax Document Collection Checklist February 14, 2025
  • RMD Considerations January 31, 2025
  • Year-End Considerations November 27, 2024

Archives

Windward Private Wealth Management Inc
Contact Us
OVERLAND PARK LOCATION
10955 Lowell Avenue, Suite 410 Overland Park, KS 66210
Hours of Operation:
8:30 am - 5:00 pm M-Th
8:30 am - 3:00 pm Fr
KANSAS CITY LOCATION
851 NW 45th St., Suite 106 Kansas City, MO 64116
Hours of Operation:
By appointment only
913-381-7411

 

Windward Private Wealth Management Inc. is an SEC registered investment advisor. Past performance is no guarantee of future results. All securities involve risk and may result in a loss. *We do not provide legal services. These services are rendered at client request in coordination with legal counsel. Legal services will be billed by the provider and are separate from our fees. We do not sell insurance products. These products may be purchased at client request in coordination with insurance agents. Insurance agents are responsible for recommendation of all insurance products. Windward does not guarantee the performance of any insurance product purchased.
Copyright © 2025 - All rights reserved | Privacy Policy | Terms of Use | Form ADV & Client Relationship Summary
Site by Thrive Internet Marketing Agency