Nowadays, saving for a child is an excellent gift for their future. They will not only start their grown-up lives with some savings in hand, but getting children involved with saving early also helps them learn valuable financial lessons

One way to teach them about financial responsibility and the importance of saving is by buying them a savings bond. Savings bonds are US Treasury-sold low-risk savings products. They are used to raise public money to fund their operations and to administer the economy. 


Aside from being the only type of security kids can actually own, savings bonds may even lead to children saving money and interested in investing and retirement-planning at a young age. Read on to learn about these 3 saving bonds for children that can help them save for their future. 

Learn About These 3 Savings Bonds for Children

Electronic Series EE Bonds

Electronic EE Bonds can be purchased in any amount over $25 and are sold at face value. The investor pays $50 for a $50 bond. You can buy in any amount from $25 to $10,000 to the penny (you could buy an EE Bond for $50.23) in any one calendar year for one Social Security Number.

EE bonds bought from May 1997 through April 2005 earn a variable rate of interest, which changes every six months. But, Series EE savings bonds, issued on or after May 1, 2005, pay a fixed interest rate and continue to earn that interest each month. 


To reward long-time bondholders, the EE bond's value is guaranteed to double from their issue price within 20 years. However, the bond can keep earning interest for a total of 30 years or until you cash them, whichever comes first. 

These can be cashed after 12 months, but unfortunately, cashing them before five years makes you lose the last three months' interest. You can buy EE bonds in your TreasuryDirect account or through payroll direct deposit.

Paper Series I Bonds

Paper I bonds are sold at face value, so the investor pays $100 for a $100 bond. It is a savings bond that earns interest based on combining a fixed rate that stays the same for the bond's life and an inflation rate that is calculated twice a year. 


Investors can only purchase Paper Series I bonds in $50, $100, $200, $500, $1,000 increments, depending on the amount they request. You may purchase these bonds up to $5,000 in total in any single calendar year. There is also a minimum investment of $50 for Paper Series I bonds. 

It earns interest for 30 years unless you cash them first; you can redeem them after a year. However, the three months of interest will be forfeited should you cash them before five years. You can buy Paper I Bonds only by mail when you file your federal tax return. 

Electronic Series I Bonds

Learn About These 3 Savings Bonds for Children

Like EE Bonds, investors who purchase I Bonds electronically can buy in any amount above $25. You can buy these bonds at any amount, to the penny, from $25 to $10,000 each calendar year.

Similar to Paper Series I bonds, this type of bond has two interest rates. The fixed rate is set when you purchase the bond. On the other hand, the second interest rate is based on the rate of inflation and subject to inflation and deflation in line with the economy.

You will only earn the full amount of interest after the bond turns five years old. If left alone, the Series I bond will continue to earn interest for 30 years. It can be purchased online in TreasuryDirect, including through payroll direct deposit.


Put in mind that savings bonds can only be purchased for kids if they are bought in the name of the child. These savings bonds are a great option for those who don't want to deal with the federal tax hassles involving savings bonds and minors. 

These also offer a safe and secure way of saving money to make a strong financial foundation for their future.