Buying Series EE and Series I Savings Bonds

Buying Series EE and Series I Savings Bonds!

The annual limitation on purchases of United States Savings Bonds will be set at $5,000 per Social Security Number, effective January 1, 2008. The limit applies separately to Series EE and Series I savings bonds, and separately to bonds issued in paper or electronic form. Under the new rules, an individual can buy a maximum of $5,000 worth of electronic and paper bonds of each series in a single calendar year, or a total of $20,000, in single ownership form. If paper bonds are issued in co-ownership form, the limit applies to the first-named co-owner. All limits are based on the issue price of the securities.

You can own U.S. Savings Bonds if you have a Social Security Number and you're a:

Resident of the United States.
Citizen of the United States living abroad (must have U.S. address of record).
Civilian employee of the United States regardless of residence.
Minor. Unlike other securities, minors may own U.S. Savings Bonds.

There are three ways to register a Savings Bond:

Single Ownership - These bonds have one owner. Only the registered owner can redeem the bond. If the owner dies, the bond becomes part of the owner's estate.
Co-ownership - These bonds have two owners. Either owner may cash the bonds without the knowledge or approval of the other. If one owner dies, the other becomes the sole owner of the bonds. Organizations cannot be co-owners of savings bonds.
Beneficiary - These bonds have one owner and one beneficiary. The registration includes the designation P.O.D., which means payable on death. Only the owner may redeem the bond during his or her lifetime. If the beneficiary survives the owner, he or she becomes the bond owner when the owner dies. Organizations cannot be named beneficiaries of savings bonds. If a name is listed on a bond as part of the mailing address - generally after "Mail to" - that person has no ownership or beneficiary rights.

Your Social Security number (SSN) is needed to buy a bond. The bond owner will be asked to provide his or her Social Security number for tax purposes when they cash the bond. But, if you're buying a gift and don't know the person's number, you can use your own. Using your SSN doesn't mean you will have a tax liability when the bond is cashed. The bond owner will be asked to provide his or her Social Security Number for tax purposes when they cash the bond.

More Series EE and Series I Savings Bond Information: