How to Buy Savings Bonds in New York

Savings bonds come in small denominations.

U.S. Savings Bonds are federally issued bonds backed by the full faith and credit of the U.S. Treasury Department. When you buy Savings Bonds, you are loaning your country money to fund various federal needs. The two types of bonds you can purchase are Series I and Series EE. Series I Savings Bonds are indexed for inflation based on the Consumer Price Index. Series EE Savings Bonds offer a fixed rate over 10 years. New York residents have several ways to purchase Savings Bonds.

Instructions

Buy Savings Bonds at Bank

1. Find a local New York bank authorized by the Treasury Department to buy and redeem Savings Bonds.

2. Walk into the bank and request to speak with a customer service representative. Explain that you would like to purchase U.S. Savings Bonds. Include how much you want to invest and what bond you would like to purchase: Series I or Series EE.

3. Fill out the appropriate application for the bond. You will need the name, address, date of birth and Social Security number of the person you are buying the bond for if it isn't yourself.

4. Provide the representative with either cash, money order or a withdrawal slip to fund the purchase of the Savings Bond.

5. Take the bond and keep in a secure place, including a safe deposit box, home safe or lock box.

Payroll Savings Bond Deductions

1. Contact your human resources administrator where you work. Ask whether they participate in the Savings Bonds Payroll Savings Plan allowing payroll deductions to purchase US Savings Bonds. Many New York government organizations and private enterprises offer this program.

2. Obtain the appropriate paperwork to enroll in the program.

3. Fill the paperwork out and submit it to your human resources administrator. Note that this is not the same as an employer-sponsored retirement savings plan, such as 401k or 403b plan.

4. Budget for the deductions to come directly out of your paycheck.

Treasury Direct Purchase

1. Go to TreasuryDirect.gov and select the Savings Bonds tab.

2. Establish a Treasury Direct account. This is free. If you are purchasing a bond as a gift, you can establish a free account for the recipient as well where the bond is electronically held for safekeeping.

3. Follow the onscreen prompts to purchase a bond for yourself or as a gift. You can request that the bond be electronically held or to have a paper bond sent directly to you.

Tips & Warnings

• Savings Bonds have annual limits to purchase. Series I Bonds are limited to $30,000 per person per year. Series I Bonds are sold at face value. Series E Bonds are limited to $15,000 in purchases per year, which is $30,000 mature face value.

References

• Bankrate: 5 Common Questions about savings bonds
• NYC Citywide Administrative Services: Savings Bonds Information for NYC Employees
• TreasuryDirect: Savings Bonds as Gifts

Resources

• Treasury Direct: Savings Bonds as Gifts