How to buy or invest in US Savings Bonds
Monday, May 10th, 2004
Categorized as: Buying US Savings Bonds
You can invest in Savings Bonds two ways.
In most states, most banks and other financial institutions handle Savings Bond transactions, although Savings Bonds aren't a bank product. Savings Bonds are issued by the U.S. Treasury. Your bank acts as an agent working with the Federal Reserve Bank to process the transaction for you.
The other way to buy a US Savings Bond is to invest electronically using an online account at TreasuryDirect. You can find out more about buying Savings Bonds this way in my post, TreasuryDirect overview.
When you buy a paper bond at a bank, the bank doesn't hand you the bond on the spot. It helps you fill out a purchase form, takes your money, and gives you a receipt. The form and money are then sent to a Federal Reserve Bank processing center, which mails your bonds to you. It takes about three weeks for the bonds to arrive.
If you can't find a bank that handles Savings Bond transactions, this post explains how to buy Savings Bonds directly from the Federal Reserve Bank.
If paper bonds you've purchased don't arrive within three weeks, this post explains how to replace Savings Bonds that you never received.
There are several other posts here that would be of interest to people making their initial Savings Bond investment, including:
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We live in England & need to know if there is a tax-free Savings Bond for children in the US as there is in the UK. If so how would we purchase for out grandchild in California?
Many thanks,
Ted Hughes
Hi Ted - No, there isn't a tax-free Savings Bond. Moreover, you have to have a US Social Security Number to purchase a US Savings Bond (although you don't need one to be an owner; non-US citizens become owners of Savings Bonds through inheritance and gifting).
Tom Adams
Hi: What banks sell i-bonds? Tried 3 banks. All say no. Thank you
Steve - in most states, most banks handle Savings Bonds. Your problem may be the words you're using. Ask if they handle "US Savings Bond" transactions. The tellers may not know what an "I-bond" is.
If you're in one of the states where most banks don't handle Savings Bonds, you just have to call around; there's no list anywhere. Other financial institutions, such as credit unions and savings associations, also often handle Savings Bond transactions.
Tom Adams