How to Buy Patriot Bonds

On December 11, 2001, the three-month anniversary of the terrorism attacks against the United States, the U.S. Treasury first released the new Patriot Bonds. While not "war bonds" in the World War II sense, Patriot Bonds are one way for Americans to express their anti-terrorism sentiments. Patriot Bonds are identical to Series EE bonds except for their Patriot Bond inscription and are subject to the same terms of service as EE bonds. You buy them at half their face value and they mature or stop earning interest, in 30 years.

Instructions

Difficulty: Easy

Things You’ll Need:

• Social Security number or Taxpayer Identification number
• Email Address (optional)
• Driver's License number or State ID number and expiration date
• A browser that supports 128-bit encryption (optional)
• Funds to purchase bonds
• Bank account and routing number to set up an account online (optional)

Purchase EE Patriot Bonds

1. Visit your financial institution to buy Patriot Bonds in person. They are available in denominations of $10,000, $5,000, $1,000, $500, $200, $100, $75 and $50. You can buy up to $30,000 at face value per person per year.
2. Purchase Patriot Bonds online directly from the U.S. Treasury Department (see Resources below). You will need to set up an online account with the U.S. Treasury using one of your bank checking or savings accounts to pay for them.
3. Hold the bonds for at least 17 years if possible. Patriot Bonds issued during or before May 2003 are guaranteed to reach face value in 17 years, although they will continue to earn interest for a total of 30 years. Bonds issued during June 2003 or later are guaranteed to reach face value in 20 years from issue.
4. Redeem your bonds at maturity and receive principal and interest at the same time. Patriot Bonds issued after February 1, 2003 must be held for at least a year before they can be redeemed.
5. Track the value of your bonds online, because their interest rate is variable.

Tips & Warnings

• Understand that Patriot Bonds go into a general fund and are not specifically marked for the war or any other cause. Money for the war and other government spending does come out of this fund, however, so your investment may or may not help the war on terrorism.
• Do not cash the bonds out before they are five years old. This results in a penalty of the interest on the most recent three months.