US Bank does not sell savings bonds directly, but you can buy them through the US Treasury's official platform, TreasuryDirect, or through a bank that acts as an authorized agent.
US Bank is a commercial bank, not a bond dealer or Treasury agent. If you want to purchase US savings bonds—Series EE or Series I bonds—you cannot do it through a US Bank branch or online banking portal. The only official source for new savings bonds is the US Treasury Department's TreasuryDirect website, where you set up an account and buy bonds electronically.
Some banks, including larger institutions, can sell savings bonds on behalf of the Treasury, but US Bank is not commonly listed among them. Before you visit a branch, check the Treasury's current list of authorized agents on TreasuryDirect.gov, because the list changes and varies by state. If US Bank does not sell them in your area, you can open a TreasuryDirect account online in about 15 minutes and purchase bonds directly from the government.
Key Takeaways
- US Bank branches do not sell savings bonds; you must use TreasuryDirect or an authorized agent bank listed on the Treasury website.
- TreasuryDirect is free to use and lets you buy Series EE and Series I bonds directly from the US government without a middleman or commission.
- Series I bonds earn interest tied to inflation and are currently the higher-yielding option, while Series EE bonds earn a fixed rate set by the Treasury.
- You must hold savings bonds for at least one year before you can cash them, and cashing them before five years means you lose the last three months of interest.
- Savings bonds are registered to a specific person or entity and cannot be transferred, so you cannot buy them as gifts through TreasuryDirect.
How to buy savings bonds if US Bank does not sell them
Open a TreasuryDirect account at TreasuryDirect.gov. You will need a Social Security number, a valid email address, and a US bank account (checking or savings) for electronic transfers. The account setup takes about 10 to 15 minutes and requires you to verify your identity through a few security questions.
Once your account is open, you can purchase bonds when ready. You choose the bond type (Series EE or Series I), the amount (in increments of $25, up to $10,000 per bond type per calendar year), and the registration—whether the bond is for you alone or for you and another person as co-owners. The Treasury deducts the purchase price directly from your bank account, and the bond appears in your TreasuryDirect account within one business day.
If you prefer to buy bonds in person or through a phone call, some banks and credit unions still sell paper savings bonds, though this is becoming less common. Call ahead to confirm whether a branch near you offers this service. Paper bonds cost the same as electronic ones and work the same way, but they take longer to process and you have a physical certificate to store.
Series EE bonds versus Series I bonds: which one to choose
Series EE bonds earn a fixed interest rate set by the Treasury every six months. The current rate is announced on May 1 and November 1 each year. If you buy an EE bond, it keeps that rate for the entire 30-year life of the bond. EE bonds are predictable—you know exactly what you will earn—but the rate is usually lower than inflation, so your purchasing power shrinks over time.
Series I bonds earn interest in two parts: a fixed rate (set when you buy) plus a variable inflation rate that adjusts every six months based on the Consumer Price Index. The combined rate changes twice a year, on May 1 and November 1. I bonds protect you against inflation, so if prices rise, your interest rate rises with them. The trade-off is that you cannot predict your exact return, and the rate can drop if inflation falls.
Most people who buy savings bonds today choose Series I bonds because inflation protection matters more than a fixed rate. However, if you believe inflation will fall significantly, an EE bond locks in a known return. You can own both types in the same TreasuryDirect account.
When you can cash in your bonds and what penalties explore
You must hold a savings bond for at least one year before you can redeem it. If you try to cash it before one year has passed, the Treasury will not allow the transaction.
If you cash the bond between one and five years after purchase, you lose the last three months of interest. For example, if you buy a bond on January 15 and cash it on March 1 of the following year, you receive interest only through December 15 of the previous year—the last three months are forfeited. After five years, you can cash the bond without any interest penalty.
After 30 years, the bond stops earning interest and you should cash it. If you do not, it remains in your account but earns nothing. You can cash bonds through TreasuryDirect by requesting a redemption, and the money transfers to your bank account within a few business days.
Tax treatment of savings bond interest
Interest earned on savings bonds is subject to federal income tax, but it is exempt from state and local income tax. You do not pay tax on the interest each year—instead, you pay tax when you cash the bond or when it reaches final maturity at 30 years.
This means you can hold a bond for 20 years, never pay tax on the interest during that time, and then pay all the tax in the year you redeem it. This can be useful if you expect to be in a lower tax bracket in a future year, though most people straightforward pay the tax in the year they cash the bond.
If you use savings bond interest to pay for may have access to education expenses (tuition and fees at an accredited school), you may be able to exclude some or all of the interest from your taxable income. This is called the Education Savings Bond Program. You must meet income limits and other requirements, so check the Treasury's rules if this applies to you.
Who can own savings bonds and registration rules
You can register a savings bond in your name alone, or as a co-owner with another person. If you register it as a co-owner, either person can redeem the bond without permission from the other. This is different from a beneficiary registration, where only the owner can cash the bond during their lifetime.
Savings bonds cannot be transferred or given as gifts through TreasuryDirect. If you want to give someone a savings bond, you must buy it in their name (if they have a Social Security number) or in both your names as co-owners. You cannot buy a bond in your name and later transfer ownership to someone else.
If a bond owner dies, the bond becomes part of their estate. The executor or administrator can redeem it, but the process requires court documents and takes longer than a normal redemption. Plan ahead if you want to leave savings bonds to heirs.
Frequently Asked Questions
Can I buy savings bonds as a gift for someone else?
Not through TreasuryDirect. You can register a bond in another person's name if they have a Social Security number, but you must set up the account and make the purchase yourself. Alternatively, you can buy a bond in both your names as co-owners, and they can redeem it whenever they choose.
What happens if I need the money before one year is up?
You cannot redeem a savings bond before one year has passed. If you need access to money sooner, savings bonds are not the right tool—use a savings account or money market account instead. Savings bonds are meant for money you do not plan to touch for at least a year.
Are savings bonds safer than stocks or mutual funds?
Savings bonds are backed by the US government and carry no market risk, so your principal is may provide. However, they earn less than stocks historically do over long periods. They are safer but slower. Choose savings bonds if you want may provide returns and can accept lower growth; choose stocks if you can tolerate ups and downs in exchange for higher potential returns.
Can I buy savings bonds through my US Bank investment account?
Not directly. If you have a brokerage account through US Bank or another broker, you may be able to buy Treasury securities (like Treasury notes or bills), but these are different from savings bonds. Savings bonds are only sold through TreasuryDirect. Ask your broker if you are unsure what products they offer.
What is the difference between savings bonds and Treasury bills or notes?
Savings bonds are designed for individual savers and cannot be sold or transferred. Treasury bills, notes, and bonds are traded on the secondary market and can be bought and sold through brokers. Treasury securities also have different maturity dates and interest structures. For most individual savers, savings bonds are simpler because you buy them once and hold them until you need the money.