Series I vs. Series EE — which to buy in 2026
I Bonds float with inflation and are perfect when CPI is elevated (2022 peaked at 9.62% composite). EE Bonds are boring but the 20-year Treasury-guaranteed doubling equals an effective ~3.5% APY for the disciplined long-term holder. In 2026 with cooled inflation, EE's doubling actually beats I Bonds if held the full 20.
- • Under 5-year horizon: neither (early penalty)
- • 5–19 years, inflation uncertain: I Bond
- • Full 20+ years, guaranteed doubling: EE Bond
- • Cash management, ladder: T-bills instead
Tax treatment: quietly excellent
Interest on both bonds is exempt from state and local income tax — a huge win for high-tax states (NY, CA, NJ). Federal tax is deferred until redemption or 30-year final maturity. Even better: bonds used for qualified higher education can be fully tax-free (income limits apply).
The $10K annual cap and how to stack
Each person can buy $10K electronic I Bonds and $10K electronic EE Bonds per calendar year via TreasuryDirect, plus $5K more in paper I Bonds via tax refund. Married couples with kids' UTMAs can meaningfully stack — a family of four buying max = $80K/yr into inflation-protected federal debt.
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Read the guideFAQ
How do I find the current value of my savings bond?
This calculator gives a close estimate from face value, issue date, and blended rate. For the OFFICIAL redemption value including exact rates for your bond's issue month, use TreasuryDirect's Savings Bond Calculator with your serial number.
What is the current I Bond rate for 2026?
The composite rate as of the most recent semi-annual reset (May 2026) is ~3.11%. This is fixed rate (~1.3%) plus inflation adjustment (~1.8%). Rates reset every May 1 and November 1 based on the latest CPI-U change.
When can I cash in a savings bond?
Not for the first 12 months (fully locked). Between 1–5 years, you can redeem but lose the last 3 months of interest as a penalty. After 5 years, redeem anytime with no penalty. Bonds stop earning interest at 30 years.
How do EE Bonds double?
Treasury guarantees a Series EE Bond is worth at least DOUBLE its face value at exactly 20 years. If the fixed-rate compounding hasn't reached 2× by then, Treasury makes a one-time adjustment. This is an effective ~3.5% APY guaranteed — better than most 20-year Treasuries in 2026.
Are savings bond interest earnings taxable?
Federal: yes, but deferred until you redeem or the bond matures (30 years). State and local: fully exempt. Special rule: if you use bond proceeds for qualified higher education, interest can be fully federal tax-free (subject to income limits ~$170K MFJ in 2026).
How much can I buy in a year?
$10,000 in electronic I Bonds + $10,000 in electronic EE Bonds per Social Security Number per calendar year via TreasuryDirect. Additional $5,000 in paper I Bonds using your federal tax refund (Form 8888).
Should I buy I Bonds or T-bills in 2026?
T-bills (~4.4%) currently beat the I Bond composite rate (~3.11%), so for pure yield in 2026 T-bills win. I Bonds shine when inflation surges (2022 saw 9.62% composite). Diversify — I Bonds for inflation hedge, T-bills/HYSA for cash yield.
Can I gift savings bonds?
Yes — buy them in a recipient's name via your TreasuryDirect gift box. They count against the recipient's $10K cap the year you deliver them, not when you buy. Great for kids and grandkids.
How this calculator is built
Independently maintained
Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
Sourced from primary data
Benchmarks come from public AdSense / Stripe / IRS disclosures and reader-submitted data — never third-party "$X per view" claims. Full methodology.
Last reviewed
July 2026. We re-check every figure on the platform on a rolling quarterly cycle.
Editorial standards
See our editorial policy and disclaimer. Results are estimates, not advice.