Buying I BondsAn individual can purchase $5,000 in paper and $5,000 in electronic I Bonds per calendar year. The annual maximum limit is based on your Social Security number, so purchases as a co-owner count towards the limit. Unlike EE Bonds, I Bonds are sold at face value. I Bonds can be purchased under sole ownership, primary ownership, or for a beneficiary. Types of I BondsPaper I Bonds - Paper I Bonds are available in denominations of $50, $75, $100, $200, $500, $1,000, and $5,000 and are issued as paper bond certificates. Paper I Bonds are available for purchase and redemption at most banks nationwide. Paper bonds can be converted into electronic bonds using the Treasury Direct website.  Electronic I Bonds - Electronic I Bonds are available directly from the US Treasury through the Treasury Direct website. A $25 minimum purchase of I Bonds must be made, but unlike paper I Bonds, the electronic versions are not held in denominations. This means that any amount of the total purchase may be redeemed after the one year minimum while the rest continues earning at the current rate. Payroll Deduction Purchases - Many organizations offer direct purchase of I Bonds and other US Savings Bonds directly through payroll deduction plans. With these plans, part of your pretax paycheck is deducted for use in purchasing bonds directly. Because payroll deductions usually occur on a pretax basis, you will save money on taxes by receiving less taxable income. Because I Bonds are state and local tax exempt, using a payroll deduction program may be beneficial for those worried about taxable income. The Treasury Direct website also allows you to schedule direct deposit deductions for purchase of Zero-Percent Certificate of Indebtedness, which can then be used to purchase I Bonds through the Treasury Direct website. When to BuyI Bonds earn interest from the first day of the month of which the bond is purchased. Because I Bond issue dates are based only on the month and year of issuance and not the day, purchasing bonds on the last day of the month will result in the entire month’s interest applying. It is therefore advisable to purchase I Bonds late in the month and to redeem them early in the month. You will not receive interest for the month in which you redeem the bond, so redeeming it early allows you to earn interest in another way. I Bond rates are adjusted the first of November and May. While it is nearly impossible to know what the fixed rate of the new bonds will be, the CPI-U measurement can be estimated by looking at the value of the inflation over the past several months. If you are considering purchasing I Bonds close to an adjustment date, evaluating the current fixed rate and the potential value of the variable component may determine when to buy. Paper I Bond PortraitsWhat do I Bonds looks like? Click on an image to view a portrait and brief description of the historical person displayed on a paper I Bond.
Helen Keller
(1880-1968) lost her sight and hearing as a young child due to illness, but overcame these challenges and went on to become the twentieth century's best known advocate for people with disabilities. Through her writing, lectures, and work with various organizations, Keller focused public attention on issues affecting the handicapped. She was also successful in making Braille the standard for printed communication with the blind. She had a lifelong relationship with the American Foundation for the Blind, and was instrumental in the Lions Club International's devotion to the blind and blindness prevention.
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Series I Bonds
