Wichita Bail Bonds Blog

The cost to buy a government bond depends on the type of bond and how much you want to invest. In the United States, most individuals purchase government bonds through the U.S. Department of the Treasury, which sells various types, including Series I Savings Bonds, EE Bonds, and Treasury Bonds (T-bonds). You can start with as little as $25 for savings bonds or larger amounts for long-term Treasury securities.

Series I Savings Bonds

Series I Bonds are the most popular choice for individual investors because they earn interest that adjusts for inflation. These bonds are backed by the U.S. government, making them one of the safest investments available.

• Minimum purchase – $25 (when bought electronically through TreasuryDirect.gov)
• Maximum per year – $10,000 electronically, plus an extra $5,000 with your tax refund
• Interest rate – Changes every six months based on inflation and a fixed base rate
• Holding period – Must be held at least one year, and if cashed before five years, you lose three months of interest

Series EE Savings Bonds

Series EE Bonds are similar to I Bonds but have a fixed interest rate for up to 30 years. The U.S. Treasury guarantees that these bonds will at least double in value after 20 years if held to maturity.

• Minimum purchase – $25
• Maximum per year – $10,000 per person
• Interest rate – Fixed for the life of the bond
• Best for – Long-term, low-risk savings and educational investments

Treasury Bonds (T-Bonds)

Treasury Bonds are long-term investments that mature in 20 or 30 years and pay interest every six months. They are sold in larger amounts and are often purchased by investors, institutions, or those saving for retirement.

• Minimum purchase – $100
• Maximum – No official limit, though purchases are typically made in $100 increments
• Interest payments – Every six months until maturity
• Where to buy – Directly from TreasuryDirect.gov or through banks and brokers

Treasury Bills (T-Bills) & Treasury Notes (T-Notes)

If you prefer shorter-term investments, T-Bills and T-Notes are available. T-Bills mature in one year or less, while T-Notes last 2 to 10 years. Both are sold at a discount and pay the full face value at maturity.

• Minimum purchase – $100
• Term length – T-Bills – a few weeks to a year; T-Notes – 2 to 10 years
• Interest – T-Bills don’t pay interest periodically; T-Notes pay semiannually

You can buy U.S. government bonds starting at just $25 for savings bonds or $100 for Treasury Bonds. The cost depends on the type and amount you choose to invest, but all are considered safe, low-risk investments backed by the U.S. government.