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Savings Bonds

 A safe, secure investment choice

United States Savings Bonds offer a secure investment option for a balanced portfolio. PlainsCapital Bank offers both Series I and Series EE/E Bonds to meet your saving needs. The federal government credits interest to the bond monthly; accumulated interest is payable when you cash the bond.

Series I Savings Bonds

Series I Bonds are a low-risk, liquid savings vehicle that earns interest while protecting you from inflation. Sold at face value, these bonds are ideal for gifts, financing education or supplementing retirement income. They feature an annual interest rate that reflects the combined effects of a fixed rate and a semi-annual inflation rate.

Series EE/E Savings Bonds

EE/E Savings Bonds feature the security of saving at fixed interest rates for up to 30 years. Paper EE Savings Bonds are sold at half face value. In other words, you pay $25 for a $50 bond. Interest rates for EE Bonds are calculated as 90% of six-month average of five-year Treasury Securities market yields.

Savings Bond Purchase Information

  • Paper bonds are available in denominations of $50, $75, $100, $200, $500, $1,000, and $5,000.
  • Maximum paper bond purchase per calendar year is $5,000



Savings Bond Redemption Information

  • Minimum term of ownership is one year
  • Interest-earning period is 30 years
  • Early redemption penalties:
    • Before five years, forfeit three most recent months' interest
    • After five years, no penalty

Savings Bond Tax Considerations

  • Interest earnings may be excluded from Federal income tax when used to finance education*
  • Interest earnings are exempt from state and local income taxes but are subject to state and local estate, inheritance, gift and other excise taxes
  • Interest earnings are subject to federal income tax
*Consult your tax professional for tax rules regarding savings bonds.