U.S. savings bonds are Treasury obligations, but “safe” does not mean instantly accessible or that every bond offers a fixed return. For bonds issued May 1 through October 31, 2026, Series EE bonds carry a 2.40% fixed annual rate and a guarantee that their value will at least double after 20 years. Series I bonds start with a 4.26% composite rate, including a 0.90% fixed component, but their inflation-linked component resets every six months. You buy new electronic bonds through TreasuryDirect; the better fit depends on how long you can leave the money invested and whether you want inflation-linked interest.
How EE and I savings bonds differ
Both series are U.S. Treasury savings bonds. Their interest accrues monthly and compounds semiannually, and each can earn interest for up to 30 years. The main difference is how the rate behaves: current-issue EE bonds have a fixed rate and a 20-year doubling guarantee, while I bonds combine a fixed rate with an inflation-linked component.
| Feature | Series EE | Series I |
|---|---|---|
| Rate for bonds issued May 1–October 31, 2026 | 2.40% annual fixed rate, according to the U.S. Department of the Treasury’s May 2026 rate announcement (Treasury rate announcement). | 4.26% composite rate, including a 0.90% fixed rate, according to the U.S. Department of the Treasury’s May 2026 rate announcement (Treasury rate announcement). |
| What happens to the rate after purchase? | The rate for current-issue EE bonds is fixed for at least 20 years. | The fixed component stays for the life of the bond; the inflation component is recalculated every six months using CPI-U. |
| Inflation-linked component | None. | Yes. For this issue window, Treasury reported a 3.34% annualized inflation rate component based on a 1.67% six-month CPI-U change. |
| Longest interest-bearing term | 30 years. | 30 years. |
| Early redemption | Redeeming before five years forfeits the last three months of interest. | Redeeming before five years forfeits the last three months of interest. |
| New purchase format | Electronic through TreasuryDirect. | Electronic through TreasuryDirect. |
| Annual purchase limit | $10,000 per calendar year for each first-named SSN, under Treasury’s series rules. | $10,000 in electronic bonds per calendar year per SSN or EIN; check Treasury’s detailed rules for any applicable additional limits. |
Rates apply to bonds issued in the stated window; they are not a forecast of future returns. The I-bond composite rate is not guaranteed for the bond’s full term because its inflation component changes. Treasury explains the series, rate rules, and purchase limits on its savings bonds page and I bonds page.
Which series fits your savings goal?
Choose EE if the 20-year guarantee matches your horizon
EE bonds issued since May 2005 have a fixed rate, and Treasury guarantees that an EE bond will be worth at least twice its purchase price at 20 years. If the bond’s value under its stated rate has not reached that amount by then, Treasury adds value to meet the guarantee. The 2.40% rate for bonds issued May through October 2026 is the stated annual fixed rate; it is not the same as the effective return implied by the 20-year doubling guarantee.
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That guarantee is most relevant if you can leave the money invested through the full 20 years. It does not make an EE bond a good fit for a goal that requires unrestricted access sooner.
Choose I if inflation-linked interest is important
An I bond’s fixed rate remains with the bond, while the inflation component is recalculated every six months. For bonds issued May through October 2026, Treasury set the fixed component at 0.90% and the composite rate at 4.26%. The rate announcement reported a 3.34% annualized inflation component, based on a 1.67% six-month CPI-U change. Future composite rates can differ as inflation measurements change.
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I bonds offer an inflation-linked rate mechanism, not a promise that the current composite rate will continue. Consider whether you can accept rate changes and hold the bond through your intended savings horizon.
How to buy a savings bond
New EE and I savings bonds are electronic purchases made through TreasuryDirect. New I bonds have been electronic only since January 1, 2025; paper I bonds are no longer available through the tax-refund feature.
- Go to TreasuryDirect, the Treasury’s official application for buying and holding savings bonds, and open or sign in to your account.
- Select BuyDirect, then choose Series EE or Series I.
- Enter the purchase and registration details, including the owner. Check the owner and any beneficiary information carefully before submitting.
- Choose an amount of at least $25. Electronic purchases can be made to the penny, subject to Treasury’s annual limits.
TreasuryDirect provides current purchase instructions on its savings bonds page.
When you can cash a bond—and what early redemption costs
Savings bonds are not cash that can be withdrawn at any time without consequence. If you redeem either series before it has been held for five years, you lose the last three months of interest. After five years, that early-redemption penalty no longer applies. Bonds can earn interest for up to 30 years; leaving them invested beyond that point does not extend the interest-bearing term.
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Plan the purchase around when you expect to need the money. If you may need funds on short notice, keep that portion in an account designed for ready access rather than relying on a savings bond.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How savings-bond interest is taxed
Interest is generally subject to federal income tax but exempt from state and local income taxes. Under applicable rules, owners can generally report federal tax annually or defer it until redemption or final maturity. The right timing can depend on your circumstances, so check current IRS guidance or consult a tax professional.
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An education-related federal tax exclusion may be available only when ownership, use of proceeds, income, and other requirements are met. It is not automatic; consult current IRS Publication 550, Form 8815, and Treasury instructions before counting on it as a tax benefit. Treasury’s tax overview is available at Tax information for savings bonds.
Check the rate before you buy
The rates above apply to the May 1–October 31, 2026 issue window. Treasury announces savings-bond rates on May 1 and November 1, so use its current rate announcements and product information if buying after October 31, 2026. The subsequent I-bond rate is not established here.
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