Savings Bonds’s Top Three Treats For U.S. Savings Bond Owners

Savings Bonds are a safe and secure investment, backed by the full faith and credit of the U.S. government.  Here are’s three sweet treats for bond owners:

1. U.S. Savings Bonds Never Lose Their Value.

Even in the worst financial market conditions, savings bonds will never actually lose money. The interest rates applied to savings bonds is tied to the financial markets, however, unlike other investments, even in times of severe deflation, the earnings rate won’t go below zero and the redemption value of savings bonds will not decline.

To learn what your paper E, EE or I savings bonds are worth and the interest rates they are earning, use a complimentary savings bond calculator which includes a detailed, personalized, color-coded printable Savings Bond Inventory Report.

2. Savings Bonds Can Often Be Worth A Lot More Than Their Face Amount.

Most people assume when they cash in their paper bonds, they will receive the amount printed on the front of the bond. Most series EE (paper) bonds were purchased for half of their face amount. The cash in value and the interest rate that bond is earning depends on when the bond was issued.  Bonds do not all perform the same. There are many different rules, interest rates and regulations based on the issue date (found on the front of paper bonds).

If paper EE bonds are held beyond their initial maturity (when they reach face value) they will continue to earn interest and grow in value, until they reach final maturity when they no longer earn any interest, which is usually 30 years from the issue date.

3. Savings Bonds Are Free From State And Local Income Taxes.

You can also defer the reporting of interest income earned on savings bonds until they are either cashed in (redeemed) or until they reach final maturity, whichever occurs first.

You can opt to report the interest earned annually. However, once this option is selected, interest must be reported every year thereafter including for any new bond purchases. This  can be very beneficial if reporting the interest earned on a child’s tax return (when presumably they have a lower tax burden) or avoid having to report a large amount of interest income on your federal income tax return in any given year.

About’s complimentary calculator provides cash in values, interest rates and a personalized, printable, color-coded, Savings Bond Inventory Report along with a “What This Means To You” explanation. For ongoing savings bond management & updated bond values via unique monthly e-Bond Statements, try a free 14-day trial of Membership Advantages which includes a helpful Cash-In-Report.©

By Jackie Brahney, Marketing Director,,

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