I Bonds

EE Bonds

Denominations

Any amount of $25 or
more, including penny increments*

Any amount of $25 or
more, including penny increments*

Purchase Price

Face value**

Face value**

Purchase Limit

$5,000 per
Social Security Number***

$5,000 per
Social Security Number***

Interest Earnings

• A fixed rate of return and a  variable semiannual
  inflation rate (based on CPI-U  for March and September) are
  combined
• Interest compounds semiannually for 30 years

• Bonds issued after May 2005 earn a fixed rate of return.
• Variable rates for bonds bought from May 1997 through
  April 2005 are based on 90% of the 6-month averages of
  5-year Treasury Securities yields.
• Interest compounds semiannually for 30 years.

Redemption

Can be
redeemed after 12 months

Can be
redeemed after 12 months

Early Redemption Penalties

3-month
interest penalty if redeemed during the first 5 years

3-month
interest penalty if redeemed during the first 5 years

Taxes

• Exempt from state and local income tax
• TreasuryDirect reports interest earnings; an online
  1099-INT shows interest reportable for tax purposes.
• Tax benefits available when used for education expenses

• Exempt from state and local income tax
• TreasuryDirect reports interest earnings; an online
  1099-INT shows interest reportable for tax purposes.
• Tax benefits available when used for education expenses