What Is a Series EE Savings Bond?

A Series EE Savings Bond is a low-risk savings product issued by the U.S. Department of the Treasury. Think of it as a long-term savings vehicle backed by the federal government. EE bonds are designed to be held for years, earning interest along the way. They are not stocks, and they don’t fluctuate with the market like many investments do.

Today, EE bonds are purchased and managed electronically through a Treasury Direct account which paper EE bonds are no longer issued. They earn a fixed rate set at the time of purchase, and if you hold them long enough, the Treasury provides a guarantee that the bond’s value will reach a specified benchmark by a certain year (for modern EE bonds, that’s a value-doubling guarantee at the 20-year mark). The maximum earning period is up to 30 years.

How EE Bonds Work (Interest, Terms, Access)

Here are the practical nuts and bolts of EE bonds….

• How you buy – Open a free TreasuryDirect account and purchase EE bonds electronically. The minimum is typically $25 (you can buy in penny increments), and there’s an annual purchase limit per Social Security Number.
• Interest – EE bonds earn a fixed rate that starts when you buy the bond and continues until final maturity (up to 30 years). The rate set at purchase doesn’t change for that bond. The Treasury also guarantees that EE bonds reach a specified value by 20 years if you hold them that long.
• When you can cash out – You must hold EE bonds for at least 12 months. If you redeem within the first five years, you forfeit the most recent three months of interest. After five years, there’s no early-redemption penalty.
• Ownership and gifting – You can hold EE bonds in your Treasury Direct account or gift them to others (they’ll need a Treasury Direct account to receive them).
• Safety – Because they’re backed by the U.S. government, EE bonds are considered among the lowest-risk savings options available.

EE bonds are intended for long-term saving, not for day-to-day spending, quick cash needs, or paying legal obligations. If you’re looking for safe, predictable growth over years with federal backing, they can make sense as part of a conservative savings plan.

Taxes on EE Bonds

EE bond interest is subject to federal income tax but is generally exempt from state and local taxes. You can choose to report the interest annually or defer reporting until you redeem the bond or it reaches final maturity, many people defer to keep things simple.

There’s also a special rule sometimes called the “education exclusion”: under certain conditions and income limits, interest from EE (and I) bonds may be excludable from federal tax if bond proceeds are used for qualified higher-education expenses in the same year. If you’re considering this, talk to a tax professional to confirm eligibility and documentation requirements.

Pros and Cons of EE Bonds

Like any savings product, EE bonds have trade-offs. Here’s a balanced look….

• Pros
  • Backed by the U.S. government (very low default risk)
  • Fixed interest rate; predictable growth over time
  • Potential value-doubling guarantee at 20 years
  • Federal tax deferral; generally exempt from state/local tax
  • Electronic ownership and recordkeeping via Treasury Direct
• Cons
  • Must hold at least 12 months; early cash-out penalty before five years
  • Lower expected return than higher-risk investments
  • Annual purchase limits apply
  • Not designed for short-term cash needs or legal obligations like bail

EE Bonds vs. Bail Bonds: Totally Different Purposes

Here’s where confusion happens. The word bonds covers very different things….

• EE bonds are government savings products. You buy them to save money over years. They are not connected to the criminal court system.
• Bail bonds are surety arrangements used in the justice system. If someone is arrested, a licensed bail bond company (like Baxter Bail Bonds) can post a bond with the court to secure the person’s release while their case moves forward. You pay a fee and agree to conditions; the goal is to ensure the defendant appears at all court dates.

Importantly, EE savings bonds are not a form of bail. Courts typically require cash bail or a surety bond posted by a licensed bail agent. An EE savings bond cannot be handed over in place of bail. If your goal is to resolve a jail release situation in Wichita or Sedgwick County, you’ll want to speak with a local bondsman, not a banker and not the Treasury.

If You Need Bail in Wichita: What to Do

If you or a loved one needs help with bail in Wichita, the fastest path is to contact a licensed, local bondsman who knows the courts and procedures. At Baxter Bail Bonds, we explain your options clearly, coordinate with the court, and help you understand what to expect next.

1. Call Baxter Bail Bonds – (316) 554-0414
2. Gather details – Defendant’s full name, booking number (if available), and the jail or court involved.
3. Confirm court info – For District Court cases, check the 18th Judicial District (Sedgwick County) at DC18.org. For Municipal matters, see Wichita Municipal Court.
4. Inmate status – You can search custody status via the Sedgwick County inmate search: Official Inmate Search.

We’ll walk you through each step so you know timelines, costs, and responsibilities before you make decisions.

Helpful Resources

• U.S. Treasury (Treasury Direct) – TreasuryDirect.gov, open an account, buy/manage EE bonds
• Investopedia – Series EE Savings Bonds (overview)
• 18th Judicial District (Sedgwick County District Court) – DC18.org
• Wichita Municipal Court: City of Wichita
• Sedgwick County Inmate Search – Official Inmate Search

FAQ

Can I use an EE savings bond to post bail?

No. EE bonds are government savings products, not a recognized form of bail. Courts generally require cash bail or a surety bond posted by a licensed bail agent. If you’re unsure about the process in your case, call us and we’ll help you understand the correct steps.

Are EE bonds risky?

They’re considered very low risk because they’re backed by the U.S. government. The trade-off is a lower expected return compared with riskier investments. They’re meant for long-term saving.

Do EE bonds still come in paper form?

New EE bonds are issued electronically via Treasury Direct. If you own old paper bonds, you can still redeem them according to the terms that applied when they were issued.

When do EE bonds mature?

EE bonds can earn interest for up to 30 years. There’s also a value-doubling guarantee at 20 years for modern EE bonds if held that long. You can redeem after 12 months, but you’ll forfeit the last three months of interest if you cash out before five years.

Talk to Baxter Bail Bonds

If your goal is to handle a jail release or court appearance, not long-term saving, EE bonds won’t help. A local bondsman will. We’re here to answer questions and help you move quickly and correctly.

This article is for general information only and is not legal, tax, or investment advice. Consult a qualified professional for guidance specific to your situation.