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This article is part of the Missouri Saves Program


Series EE Patriot Bonds

Joyce Cavanagh, Ph.D., Former Consumer & Family Economics State Specialist, College of Human Environmental Sciences, University of Missouri Extension

What are Patriot Bonds, how do they work and how can I buy them?

Patriot Bonds are Series EE savings bonds, which are specially inscribed with the words "Patriot Bond." The Patriot Bond series will begin December 11, 2001. Bonds increase in value every month, and interest is compounded semiannually. You can cash your bond after six months. Bonds cashed before they are five years old are subject to a 3-month interest penalty. EE bonds stop earning interest at 30 years. These bonds are free from State and local income taxes. Federal tax on interest earned can be deferred until you cash the bond or it reaches maturity (whichever occurs first).

You can purchase the Patriot Bond at any of thousands of financial institutions serving as savings bond agents. You can contact your bank or financial institution to see if they provide this service. You can also purchase this bond via the Internet at

These bonds, however, cannot be purchased through payroll savings plans due to the fact that bonds bought through a payroll savings plan are processed by many different organizations using a variety of inscription techniques.

Will the money I invest in Patriot Bonds be earmarked to pay for the War on Terrorism?

No, the money you invest in Patriot Bonds will not be directly used toward the War on Terrorism. The government established the Patriot Bond inscription in response to the public's desire to express their support for the rebuilding and war efforts. The funds, however, are deposited in the general fund and are spent according to law. Some of the general funds, though, are used to contribute to the recovery and war efforts.

What denominations of the Patriot Bond are available? Can I buy them as gifts?

The available denominations for the Patriot Bond are: $50, $75, $100, $200, $500, $1,000, $5,000 and $10,000. The purchase price is one-half the face amount.

You can purchase Patriot Bonds for gifts for others, though you will need the Social Security number of the person for whom you wish to buy the bond. If you want to deliver a gift bond in person or mail it with a personal message, you should have the bond mailed to yourself.

Resources: Department of the Treasury 




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Last update: Tuesday, May 05, 2009