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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 began 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.




Dr. Joyce Cavanagh, Former Assistant Professor and State Specialist, Consumer and Family Economics

Department of the Treasury














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Last update: Friday, July 25, 2008




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