Bond buyers who use TreasuryDirect, the only outlet for purchasing E/EE bonds from the U.S. government after January 2012, can set up automatic purchases through payroll deduction; monitor and manage Treasury holdings online at any time; and opt to have redeemed securities directly deposited to their bank accounts, according to TreasuryDirect. The major benefit of U.S. savings bonds is their overall safety, explains the Securities and Exchange Commission.
U.S. savings bonds are backed by the U.S. government, notes the Securities and Exchange Commission. EE bonds purchased after 2005 are fixed-rate securities that pay the same rate of interest until maturity, states TreasuryDirect. The interest rate for an EE bond is set at the time of purchase. One benefit of EE bonds is they can be redeemed as early as 12 months after purchase or held for their full 30-year term.
TreasuryDirect allows bond buyers to choose the exact amount of the bond they want to purchase over a minimum purchase of $25, according to TreasuryDirect. Buyers can purchase up to $10,000 in EE bonds in a given year. From a tax perspective, EE bonds are tax-advantaged in they are exempt from state and local taxes, although taxed at the federal level. In some cases, bonds may be exempt from federal taxes if they are used to fund certain educational expenses.