How Savings bonds Work
Prior to 2012, Series EE Bonds were purchased at half of face value for an investment as little as $25, and Series I Bonds were purchased for full face value. Effective 2012, both Series EE and Series I are purchased for face value in increments of at least $25 and up.
You may buy up to $10,000 in Series I Bonds and $10,000 of EE bonds electronically, held in your own name each calendar year. Additionally, you can purchase up to $5,000 in Series I paper savings bonds with your IRS tax refund.
Safety of Principal
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Liquidity and Penalties
Savings bonds cannot be cashed in until it reaches 1 year. If redeemed within 5 years after purchase the penalty for early withdrawal is equal to the last three months of earned interest.
Please Note: There are circumstances where the one year waiting period may be waived (in certain regions) by the Treasury due to a catastrophic event, such as tornadoes, floods, etc.