Buying EE Series Bonds
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Buying EE bonds is a low risk form of investment. These are government issued bonds. These bonds can be purchased and used for many different investments. You can give them as gifts or save for retirement. The choices are varied.
Who can purchase EE series bonds
Just about any individual or entity can buy EE series bonds. Organizations both private and public can own EE series bonds. Associations and corporations can own EE bonds. Electronic savings bonds can be owned by individuals but not by corporations or businesses. The requirements to buy EE series bonds are simple. You must have a Social Security Number to own bonds. Along with the Social Security Number you must be a resident of the United States or if living abroad you must have a United States address and be a citizen of the United States. Minors can own EE bonds as well as any civilian employee of the United States.
2 forms
There are 2 forms of EE series bonds, the traditional paper bond and electronic EE bond. The main differences are in redemption value and in the original purchase price compared to face value. These differences you will want to review and see how they may affect you before deciding to purchase EE series bonds.
Paper EE series bonds
Paper EE bonds certificates are still available for purchase through payroll deductions and most financial institutions. Paper bonds are sold for half their face value. If you want a $50 bond you will pay $25 for it. You can purchase up to $5,000 in paper EE series bonds and $5,000 in electronic EE series bonds in any one calendar year. You can buy paper EE series bonds in amounts of $50, $75, $100, $200, $500, $1,000 and $5,000. Paper bonds are worth their face value at maturity.
Electronic EE series bonds
Through a TreasuryDirect account you can buy, redeem and control your electronic EE bonds. Electronic EE bonds are sold at full face value. If you want to purchase a $50 bond you will pay $50 for it unlike paper bonds. You can purchase them in $25 increments with a maximum purchase of $5,000 per calendar year. With electronic bonds you do not need to worry about loss of the bond or destruction of the paper bond. These bonds are electronically issued to your account and you can access them 24/7 online. If you have a TreasuryDirect account you can also convert your E/EE paper bonds to electronic securities through a SmartExchange program.
Redemption
There are restrictions for cashing in more than $1,000 of EE bonds at one time. If you want to redeem your EE series bonds during your first 5 years of ownership you will be penalized the last 3 months interest. Once you have owned them for longer than 5 years you can cash them in with no penalty
Go back to our EE Series Bonds 101 Guide or continue the guide with EE Bond Terms
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