Savings bonds are investments that you can use in the future, or may cash in for emergencies.
- You can direct the IRS to put all or part of your federal tax refund toward the purchase of an I bond.
- The Treasury will issue paper savings bonds, mailed directly to the address listed on your 1040.
- The I bond is a “face value” bond, meaning that if you pay $50 you’ll get a $50 bond.
- I bonds are available in denominations of $50, $100, $200, $500 and $1,000. If you buy $250 worth of bonds or less, you’ll receive $50 bonds. If you buy more than $250 you’ll receive five $50 bonds and the remainder in the largest denominations possible.
- You are allowed to buy a maximum of $5,000 in paper bonds per Social Security number.
- You must hold an I bond for 12 months before cashing it. Exceptions may be allowed in the event of certain emergencies. If you cash an I bond in fewer than five years you’ll forfeit the last three months’ accumulated interest.
- You can buy a bond in your name or, if you’re married and filing jointly, it will be in both spouses’ names.
