US Savings Bonds

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Us Savings Bonds Faq. This section of Us Savings Bonds Information website contains many questions and answers on US Savings Bonds. 

Click on one of the links below to find the answer to each Us Savings Bonds Faq.

• How do I calculate what my US savings bond is worth today? Click here for Savings Bond Calculator.
• What are the interest rates on Series EE US Savings Bonds?
• How long must I hold a US Savings Bond?
• Does my US Savings Bond still earn interest?
• What do I do when my US Savings Bonds stop earning interests?
• Can Savings Bonds be cashed in tax-free for contribution to a qualified state tuition program (529 plan) or Education Savings Account?
• What is the value of the US Savings Bonds at the death of the US Savings Bonds owner? Does the beneficiary get a stepped-up cost basis when the US Savings Bond owner dies?
• What value should the executor of the estate use to value US Savings Bonds for estate tax purposes?
• What records should I keep of my Savings Bonds?
• What do I do if I bought a US savings bond at a financial institution but it never arrived?
• How do I replace a lost US savings bond?
• Do I need to change my name of the US Savings Bonds after I married?
• If my name has changed due to divorce, do I need to have my US Savings Bonds reissued?
• What if the address on the US Savings Bonds are incorrect?
• What if the social security on the US savings bond is incorrect?
• Where and how can I buy United States savings bonds?

This section of US Savings Bonds website discusses tax consequences on Savings Bonds. We start with tax consequences on Series EE US Savings Bonds and Series E US Savings Bonds. 

Tax Consequences on Series EE US Savings Bonds

What is taxable income for US Savings Bonds?

Any increase above the purchase price of a series EE US savings bond or a series E US saving bond is interest. These earnings of US Savings Bonds are subject to Federal taxes, but are exempt from State and local income taxes. 

When can I postpone reporting income on series EE US Savings Bonds or a series E US Saving Bonds?

You can postpone reporting the series EE US savings bond or a series E US saving bond ’s accumulated interest for Federal income tax purposes until you redeem the series EE US savings bond or a series E US saving bond or the series EE US savings bond or a series E US saving bond stops earning interest 30 years from issue (40 years if the issue date is before 12/1965). 

When series EE US Savings Bonds or a series E US Saving Bonds stop earning interest, series EE US Savings Bonds or a series E US Saving Bonds are automatically redeemed and the interest earned is reported for Federal income tax purposes. 

Series EE US Savings Bonds Tax reporting

If you do nothing, your series EE US savings bond or a series E US saving bond interest is deferred for Federal income tax purposes. This is called “cash basis” reporting. You may also choose to report interest of your series EE US Savings Bonds or a series E US Saving Bonds for Federal income tax purposes each year as it accrues (“accrual basis”). Accrual based reporting of series EE US Savings Bonds or a series E US Saving Bonds may be advantageous, for example, for series EE US Savings Bonds or a series E US Saving Bonds in a child’s name. 

What are the tax consequences on Series EE Savings Bonds? When are Series EE Savings Bonds taxed?

When holding a Series EE Savings Bond, the following tax consequences on US Savings Bonds apply. The interest on US Series EE Savings Bonds is not taxable until the earlier of: 

In another word, there is no tax consequences on US Series EE Savings Bonds until one of the above events occur.

You can buy Savings Bonds or buy US Savings Bonds by applying to buy Savings Bonds in person or through the mail by several different ways. People often ask where to buy US Savings Bonds. Some United States Savings Bonds investors want to buy U.S. Savings Bonds online. Buying US Savings Bonds is easy and buying Savings Bonds online is even easier than buying Savings Bonds in person.

Where to buy Savings Bonds and how to buy savings bonds?

Interested persons in purchasing US Savings Bonds can buy US Savings Bonds from commercial banks that sell US Savings Bonds, savings and loans that offer United States savings bonds, credit unions that sell US Savings Bonds, all Federal Reserves Banks (FRB), and companies via the Payroll Savings Plan that offer the Payroll Savings Plan which include U.S. savings bonds. Note that all Federal Reserves Banks (FRB) offer US Savings Bonds. Since so many of the financial establishments offer US Savings Bonds, buying US Savings Bonds is already easy. Recently, you can also buy U.S. Savings Bonds Online.

How to buy savings bonds in person? How to buy Series EE US Savings Bonds in person?

While the Series EE US Savings Bonds can be applied for in person at thousands of financial institutions around the country which offer US Savings Bonds, Series EE Savings Bonds are best to call before you go to buy them. Some banks in certain areas of the United States no longer sell or service US savings bonds especially Series EE US savings bonds.

Information you need to provide to buy US savings bonds

The financial institutions that do sell US Savings bonds will provide a Purchase Application for Series EE US Savings Bonds. To buy Series EE US savings bonds, purchaser will need to supply the following information on the Series EE US savings bonds (and in buying other US savings bonds) application:

• Name or names to appear on the Us Savings Bond Certificate
• Social security number of the first person named on the US savings bond
• Mailing address
• Number of US savings bonds to be purchased