How do I buy a U.S. Savings bond?
The U.S. government issues Series EE bonds in various face-value denominations. Interest is paid only when a bond is redeemed. The interest from a Series EE bond is exempt from state and local taxes, and no federal tax is due until the bond is redeemed.
First, add the bond to your Security List
- Click the Investing tab.
- Click the Tools button, and choose Security List.
- Click New Security.
- Enter a meaningful name, such as US $1000-6% 01/24 for the purchase of a E/EE U.S. Savings bonds with a face value of $1000 and a maturity date of 1/20/24. If you have more than one savings bond, make sure the name you enter here is unique. Click Next.
- E/EE U.S. Savings bonds - Like U.S. Treasury bills, Series E/EE bonds are accrual securities. You purchase the bond at a discount from its face amount and earn interest while you hold the bond. You do not receive the interest, however, until you cash in the bond. As this interest accrues, the value of your bond increases up the redemption value. When you cash an E/EE bond, you receive this redemption value, which represents the return of your original investment plus the interest that you have earned while you held the bond.
- Click Add manually.
- In the Security Type list, select U.S. Savings Bond.
- Click Next and follow the on-screen instructions. Quicken may not display all the fields described below, depending on the information you enter.
- Asset Class: Select Domestic Bond.
- Maturity Date: Enter the maturity date.
- Maturity Date - Date at which the face value and final interest payment of a bond is due and payable to the investor.
Second, record the bond purchase
To track your holdings, enter a Buy transaction in one of your Quicken investment accounts. When you do this, keep in mind that U.S. Savings Bonds are tracked according to their cost per single bond, so:
- Enter the number of bonds you bought (or own) in the Number of shares field.
- Enter the cost per bond (not the total cost of all bonds) in the Price paid field.
If you bought a single paper bond with a face value of $50, you most likely paid $25 for it. You would enter 1 as the number of shares and $25 as the price paid.