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Purchase US Savings Bonds as Gift: How to Buy Online?

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Purchase US Savings Bonds as Gift

Purchase US Savings Bonds Online As Gift

You can buy US savings bonds for someone else online as gift also. To show your affection and love towards your near and dear, it is a good practice that you give them a gift on special occasions such as birthday, special occasion, anniversary etc. Many prefer to give investment bonds as a gift and US savings bonds are a good option. US saving bonds are issued by the United States Treasury. Earlier the bonds could be purchased from local banks as paper certificate to given as gift.

Now the things have changed. Now the bonds to be given as gift can be purchased only digitally through the Treasury’s TreasuryDirect website or by using your tax refund for paper gift bonds. The interest earned on US saving bonds is exempted from paying local and state government taxes; you have to pay federal taxes.

Types of US saving bonds

There are two types of saving bonds: EE type and I type. These bonds are almost similar except few differences in earning and the form in which they are available.

EE bonds can be purchased online only. It has a variable rate of interest which depends upon date of purchase. It earns a fixed interest rate which is reset every six months.

I bonds can be purchased online at the Treasury Department website or in paper form using your IRS tax return. The bond earns you a combined rate of return, a fixed rate which is fixed when you buy the bond and an inflation rate which is calculated twice a year by Treasury Department.

You can purchase any of the bonds online for value up to $10,000 in a year. I bonds may be purchased for up to $5,000 in paper form. Interest on the bonds is earned monthly and compounded every six months. The bond may be redeemed after 12 months.

Open an Account

You must have opened an account to make purchase. If you don’t have an account, follow the steps given below on how to open an account.

  • Go to www.treasurydirect.gov
  • Select ‘Open an account’ displayed on left of the home page. Then select ‘Treasury Direct’.
  • Enter required information following prompts given; you have to provide your social security number, savings or checking account number from which funds required is to be transformed and its routing number. You have to provide social security number of the person whom you are going to give the bond as a gift.
  • Create your password. Then click ‘Confirm your account’.

How to buy US saving bonds online

If you want to buy EE bonds or I bonds online, you have to go to Treasury Department’s website. It is required that both the sender and receiver have TreasuryDirect accounts. Here given are the steps on how to buy bonds:

  • Go to www.treasurydirect.gov
  • Login to your account.
  • Visit ‘Buy Direct’ button displayed on tool bar on top of the home page. Choose owner of the bond. You can buy for yourself or for someone as a gift.
  • Select type of the bonds you want to buy. Click ‘Submit’.
  • Go to ‘Add New Registration’.
  • Select ‘Sole Owner’. Enter name and social security number of the person you want to buy bonds for. Check the box ‘This is a gift’ option. Then click ‘Submit’ button.
  • Purchase screen will be displayed. Choose name from the ‘Registrant Information’ drop down menu. Enter purchase amount; you can buy for minimum $25. Choose source of funding. The face value of the bond is its purchase value.
  • Review purchase information and click ‘Submit’.

You can view the bonds you have purchased. Just click ‘Gift Box’. The bonds you have purchased appear in your gift box after one business day of the purchase.

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