When to buy savings bonds

Thursday, December 16th, 2004
Categorized as: Buying US Savings Bonds

I would like to purchase I bonds, probably through Treasury Direct. Can I bonds be purchased at any time during the year?

Tom’s response

Unlike other Treasury securities, which can be purchased only on specific days, both series I bonds and series EE bonds are available on any business day of the year.

Moreover, Savings Bonds earn interest from the first day of the month no matter what day you invest, so there’s a slight boost by buying them near the end of the month.

When you buy at a bank, the bond’s issue month will be the day of the bank transaction, but when you buy through Treasury Direct, the issue month is the day the Treasury gets the money from your bank, so schedule the purchase a few days ahead of the last business day of the month.

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FDIC Insured Certificates of Deposit can pay 1 or 2% more than savings bonds when held for a similar length of time. See top CD Rates Below:

8 Comments

On May 5th, 2006 RICHARD LEVITT said:

Under Tom’s Response, 1st line, there is an”r” omitted from “secuities” Oops.

Otherwise, your sites are TERRIFIC, most informative and helpful, and the best yet on the internet (which has lots of stuff). Thanks

On May 6th, 2006 Tom Adams said:

Richard – thanks for reporting the oops (now fixed) but I liked your comment best!

On May 11th, 2008 Shane Williams said:

Tom,

I just started looking at bonds but I now that the fixed rate for I bonds is now 0.00%. I have moeny sitting in 2 CDs, main CD is at 3.4% and matures in Nov 09, other won is for interest I get off another account (more to this story).

I would like to avoid investing in stocks as I already have all of my retirement funds in the markets. Would it be right for me to buy one or two I bonds for now and then wait till the fixed rate goes back up in Nov?

Thanks for the great site!

On May 12th, 2008 Tom Adams said:

Shane – yes, when CD’s are earning a negative rate after inflation, I bonds look good, even with a 0% fixed rate.

Tom Adams

On May 14th, 2008 Richard Hetrick said:

SO TOM YOU WOULD THINK IT IS ADVISABLE TO BUY I BONDS EVEN WITH THE 0% FIXED RATE? IWAS GOING TO LET MY SAVING 3.05% SIT IN THE BANK TILL THINGS LOOK BETTER FOR I BONDS. ANOTHER THING CAN I SWITCH EE BONDS FOR I BONDS WITHOUT IT GOING TOWARD THE 5000.00 LIMIT? THANKS TOM YOUR WEB SITE IS GREAT!

On May 15th, 2008 Tom Adams said:

Richard – no, you can’t switch between EE and I. If inflation continues at its current rate and if interest rates stay low, then I bonds will earn more even with a 0% fixed rate. However, those are two big ifs. Your guess about what happens in those areas is as good as mine.

Tom Adams

On October 7th, 2008 Dave White said:

Tom,

We have 5 $10k bank cd’s that just came due (4 Oct 08). We are retired and have sufficient income to live comfortably without touching this $50K, but want it to be entirely safe. Is it a good time to buy I bonds? When is the best time to buy and in what denominations? Thanks for your comments.

Dave White

On October 8th, 2008 Tom Adams said:

Dave – The FDIC insurance on your bank CDs and Savings Bonds are both guaranteed by the U.S. government, so I don’t see much difference in terms of safety at these amounts.

Meanwhile, the Treasury changed the Savings Bond program in January so that your maximum annual investment can only be $5,000. There are ways to increase this, but not up to $50K.

Tom Adams

Comments Closed

June 1, 2010

After six years, over 400 posts, 3,680 real comments, and over 90,000 spam comments (thank you, Akismet, for making managing a blog with comments possible), I am closing public comments on Savings-Bond-Advisor.com. I will contine to update the main articles on this site, but not the comments.

Virtually every question about Savings Bonds has been asked and answered on this site multiple times. Use the search feature (see the box in the gray area near the top of this page) or the detailed menu on the lower part of the home page to find the information you're looking for. If you have a copy of Savings Bond Advisor, you can ask me a question here.

Tom Adams

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