You can buy a savings bond in someone else's name through TreasuryDirect

The simplest way to give a savings bond as a gift is to buy it through TreasuryDirect, the U.S. Department of the Treasury's online platform. You create an account, fund it with your own money, and issue the bond in the recipient's name. The recipient does not need an account or to do anything at purchase time — they receive the bond in their TreasuryDirect account once you complete the transaction, or they can claim it later if they do not yet have an account.

The process takes about 15 minutes if you have your bank account details and the recipient's Social Security number or tax ID ready. You can buy Series EE bonds or Series I bonds this way. The bond is issued on the date you purchase it, and the recipient owns it from that moment forward — you cannot take it back or change the terms once it is issued.

Key Takeaways

  • You buy the bond through your own TreasuryDirect account using your bank account, and the bond is issued in the recipient's name.
  • The recipient needs a Social Security number or tax ID, but does not need to have a TreasuryDirect account yet — one will be created for them automatically.
  • Series EE bonds and Series I bonds can both be purchased as gifts; the choice depends on whether you want a fixed rate or inflation protection.
  • The minimum purchase is $25 for either bond type, and you can buy up to $10,000 per person per calendar year through TreasuryDirect.
  • Once issued, the bond belongs to the recipient and cannot be returned or modified, so confirm the recipient's details before you complete the purchase.

What information you need before you start

Gather these details before you log into TreasuryDirect. You will need your own bank account information to fund the purchase — the account must be in your name and be a U.S. checking or savings account. You will also need the recipient's full legal name, date of birth, and Social Security number or Individual Taxpayer Identification Number (ITIN).

If you do not have the recipient's Social Security number, you cannot complete the purchase online. Some people use an ITIN instead if they do not have a Social Security number — this is common for non-U.S. citizens who are resident aliens or have other tax filing obligations. Confirm which one the recipient has before you start.

The step-by-step purchase process

Log into your TreasuryDirect account (or create one if you do not have one yet). Click "Buy Direct" and select the bond type — Series EE or Series I. Enter the amount you want to spend; the minimum is $25 and the maximum is $10,000 per calendar year per recipient.

On the next screen, select "Gift" as the purchase type. Enter the recipient's full legal name, date of birth, and Social Security number or ITIN exactly as they appear on official documents. Double-check these details — they must match what the Treasury has on file, or the bond will not be issued correctly.

Review the transaction summary, confirm your bank account information, and submit. The bond is issued immediately on that date. The recipient will receive a notification that a bond has been issued in their name, and they can view it in a TreasuryDirect account (one will be created for them automatically if they do not have one).

Series EE versus Series I for gifts

Series EE bonds pay a fixed interest rate set by the Treasury every six months. The rate does not change for the life of the bond. Currently, the rate is set at a low percentage, but the bond is may provide to double in value after 20 years — this is called the "final maturity may provide." Series EE bonds are straightforward and predictable, which makes them popular for gifts to children or young adults who will hold them for a long time.

Series I bonds pay an interest rate that combines a fixed rate plus an inflation rate. The inflation portion changes every six months based on the Consumer Price Index. If inflation is high, Series I bonds pay more; if inflation is low, they pay less. Series I bonds are better if you want the gift to keep pace with rising prices. However, there is a penalty for cashing them in before five years have passed — you lose the last three months of interest.

For a gift, consider the recipient's age and how long they are likely to hold the bond. A young child might benefit from a Series EE bond's simplicity and 20-year doubling may provide. An adult concerned about inflation might prefer a Series I bond.

Annual purchase limits and timing

You can buy up to $10,000 per person per calendar year through TreasuryDirect. This limit resets on January 1st each year. If you want to give more than $10,000 to one person in a single year, you can buy up to $5,000 more in paper bonds through a bank or credit union, though paper bonds are less common now and some institutions no longer sell them.

The bond is issued on the date you purchase it. If you buy a bond on December 15th, that is the issue date, and the recipient starts earning interest from that day. There is no way to backdate a bond or change the issue date, so time your purchase for when you want the bond to begin accruing interest.

What happens after the gift is issued

The recipient owns the bond outright once it is issued. They can view it in their TreasuryDirect account, check the current value, and decide when to cash it in. They do not have to do anything immediately — the bond will continue to earn interest whether they log in or not.

If the recipient does not yet have a TreasuryDirect account, one will be created automatically in their name. They will receive instructions on how to access it. They can then manage the bond themselves — hold it, cash it in, or let it mature. If the recipient is a minor, a parent or legal guardian will need to manage the account on their behalf until they turn 18.

The recipient is responsible for reporting the interest earned on their tax return in the year the bond is cashed in (or the year it matures, depending on their tax situation). You do not report the interest — the Treasury sends a Form 1099-INT to the recipient when they cash it in.

Presenting the gift and explaining what it is

You can tell the recipient about the bond right away, or wait until you have completed the purchase and can show them the confirmation. Some people like to print out the confirmation or take a screenshot and present it as a physical gift card or letter explaining what they have done.

If the recipient is unfamiliar with savings bonds, explain that it is a loan they are making to the U.S. government in exchange for interest payments. The money is safe — backed by the full faith and credit of the U.S. government — and they can cash it in whenever they want after a certain period (five years for Series I, no waiting period for Series EE, though cashing in very early means less interest). It is a gift that grows over time.

Frequently Asked Questions

Can I buy a savings bond as a gift if I do not know the recipient's Social Security number?

No. TreasuryDirect requires the recipient's Social Security number or ITIN to issue a bond in their name. If you do not have this information, you cannot complete the purchase online. You could ask the recipient or their parent, or explore paper bonds through a bank, though availability varies.

What if I make a mistake with the recipient's name or Social Security number?

Once the bond is issued, it cannot be changed. If you discover an error after purchase, contact TreasuryDirect customer service right away — they may be able to help, but the sooner you report it, the better. This is why double-checking details before you submit is critical.

Can the recipient cash in the bond whenever they want?

Series EE bonds can be cashed in anytime after one year, though you lose the last three months of interest if you cash in before five years. Series I bonds have a five-year holding period — you cannot cash them in before that without a penalty. After the holding period, they can be cashed in anytime.

Do I need to report the bond on my taxes?

No. You report the purchase as a gift, which is not taxable to you or the recipient. The recipient reports the interest earned when they cash in the bond. You do not report anything related to the interest.

Can I buy a bond as a gift for someone who is not a U.S. citizen?

Yes, if they have a Social Security number or ITIN and a U.S. address. Non-U.S. citizens with these credentials can own savings bonds. Confirm with the recipient that they have one of these tax identifiers before you attempt the purchase.