What Is a Patriot Bond and How Does It Work?

Key takeaways

• Patriot Bonds were issued by the U.S. government to fund anti-terrorism efforts after 9/11.
• You can cash a Patriot Bond directly at a bank or by mailing it to TreasuryDirect.
• Patriot Bonds earn interest for 30 years unless they are cashed out earlier.

A Patriot Bond is a special-edition Series EE savings bond the U.S. government issued between 2001 and 2011. They were issued at a 50% discount off their face value and were set to mature over a 30-year period. Patriot Bonds are no longer available for purchase, but if you have these bonds, you can still cash them in or buy standard Series EE bonds.

What is a Patriot Bond?

A Patriot Bond is a special-edition paper Series EE government savings bond issued between December 2001 and December 2011. It was created in response to the Sept. 11, 2001, attacks to raise money for the government's anti-terrorism initiatives.

They are nearly identical to Series EE bonds, except for the words “Patriot Bond” printed on the bond certificates. No new Patriot Bonds have been issued since 2011, but the existing bonds continue to earn interest and can be redeemed for cash.

How do Patriot Bonds work?

Patriot Bonds were available for purchase in amounts ranging from $50 to $10,000 and earn interest for 30 years (or until you cash them in). Patriot Bonds issued before May 2005 earn a variable interest rate that changes every six months, while those issued in May 2005 or later earn a fixed interest rate for the first 20 years. That means if you bought one in 2006, it will earn the same interest rate until 2026, assuming you don’t cash out the bond early.

A Patriot Bond's redemption value is its issue price plus any accrued interest. You aren’t required to report the interest you earn on Patriot Bonds on your tax returns until you redeem them or they mature, whichever comes first. The upside is that Patriot Bonds, Series EE bonds and Series I bonds (another type of government bond) are taxed only on the federal level — you’re off the hook for state and local income taxes.

As mentioned, you can no longer purchase new Patriot Bonds, but you can still buy Series EE bonds. Today, you can buy Series EE bonds only electronically through a TreasuryDirect account — paper bonds are no longer issued. You can buy Series EE bonds for as little as $25, and they are guaranteed to double in value in 20 years. Series EE bonds earn interest monthly, but you don’t receive the money until you cash in the bond or it reaches maturity.

How to check the value of a Patriot Bond

If you have old Patriot Bonds lying around, you can find out their value by using the savings bond calculator offered by TreasuryDirect, an online platform through which you can buy or sell government security directly from the U.S. Treasury Department.

The calculator can provide various details about your bond, including its:

• Current value
• Historical value
• Values on past dates
• Next accrual date
• Maturity date
• Interest earned

You can also use this calculator to determine the value of other paper savings bonds, such as Series EE, Series E and Series I. Note that this calculator doesn’t work for electronic bonds. To find out the value of your electronic savings bonds, log in to your TreasuryDirect account.

How to cash in a Patriot Bond

If you’re ready to cash in your Patriot Bonds, you have two options:

• Bank or credit union: You may be able to cash yours in at your local bank or credit union. To check whether your financial institution offers this service, call its customer service number or speak with a teller at a branch. The bank will likely ask to see a government-issued ID, such as a driver’s license, before cashing your bonds. The number and amount of Patriot Bonds you can cash in will vary by bank. If a bank cashes your Patriot Bonds, it must provide a 1099-INT form at that time or by the following January ahead of tax season.
• TreasuryDirect: You can cash your Patriot Bonds by mailing them to the U.S. Treasury Department. You’ll need to send your paper bonds along with a signed FS Form 1522. If your bonds are worth more than $1,000, you’ll need to get your signature certified. Keep in mind you can’t do a partial redemption of a paper savings bond — you must cash its entire value. There’s no limit on the value or number of savings bonds you can cash in at one time as long as the bonds meet the requirements for cashing.

When can you cash in a Patriot Bond?

You can cash in a Patriot Bond at any time. However, the longer you hold onto the bond, the more you can potentially earn.

For Series EE bonds, you must wait 12 months before you can cash them. Cashing in Series EE bonds within the first five years will result in a penalty of three months' interest.

Frequently asked questions

Is a Patriot Bond the same as a Series EE bond?

Yes, they are essentially the same. Patriot Bonds were limited-edition Series EE bonds issued between 2001 and 2011 to raise money for anti-terrorism efforts after 9/11. Aside from the name printed on the paper bond, there is little difference between them.

What are the interest rates on Patriot Bonds?

The interest rate on a Patriot Bond depends on when it was issued. If you bought it in or after May 2005, the interest rate is fixed. Any purchased before May 2005 have a variable rate.

The current interest rate for Series EE Bonds issued from May 1 to Oct. 31, 2024, is 2.70%.

Can you cash in Patriot Bonds at any bank?

No, not all banks redeem them. Before trying to cash them, it’s a good idea to call your bank to confirm that it accepts Patriot Bonds. Banks that cash in these bonds for their customers include Bank of America and U.S. Bank.