What Is Bank Fraud? How to Recognize It, Avoid It and Report It
How to Open a Bank Account for a Minor
How to Balance a Checkbook
Retirement Savings: How Much Should I Save Each Month?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 was a special-edition Series EE savings bond the U.S. government issued between 2001 and 2011. Patriot Bonds 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. You can also still buy standard Series EE bonds, which are essentially the same as a Patriot Bond in everything but name.
Learn more about Patriot Bonds, how they work and how to redeem them for cash.
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. The Patriot Bond was created in response to the Sept. 11, 2001, attacks to raise money for the government’s anti-terrorism initiatives.
Patriot Bonds were available for purchase in denominations ranging from $50 to $10,000. They 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 a Patriot Bond in 2006, it will earn the same interest rate until 2026, assuming you don’t cash out the bond early.
Patriot Bonds 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.
What is my Patriot Bond worth?
A Patriot Bond’s redemption value is its issue price plus any accrued interest. If you have old Patriot Bonds lying around, you can find out their value by using the savings bond calculator offered by TreasuryDirect. This online platform is where you can buy or sell government securities 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.
Where to cash in your Patriot Bond
If you’re ready to cash in your Patriot Bonds, you have two options:
| Bank or credit union |
|
| TreasuryDirect |
|
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.
What bonds are available to buy today?
As mentioned, you can no longer purchase new Patriot Bonds, but you can still buy other types of bonds, including:
- Series EE bonds: You can buy Series EE bonds for as little as $25 and up to $10,000, and they are guaranteed to double in value in 20 years. Series EE bonds earn a fixed rate for at least the first 20 years. Interest accrues monthly, but you don’t receive the money until you cash in the bond or it reaches maturity. You can buy Series EE bonds electronically through a TreasuryDirect account — paper bonds are no longer issued.
- Series I bonds: Series I bonds earn a combination of a fixed and variable rate. The variable rate is based on inflation and is calculated twice a year in November and May. Like Series EE bonds, interest accrues monthly and compounds semiannually. I bonds are also available only electronically.
- Treasury bills: Treasury bills are short-term government bonds with terms ranging from four weeks to 52 weeks. T-bills are either sold at a discount or for face value. When they mature, you’re paid their face value. If you’re looking for a safe place to store money for a purchase in the near future, Treasury bills could be worth considering.
While not technically a bond, another alternative is a certificate of deposit (CD). A CD is a type of savings vehicle that allows you to earn a fixed interest rate for a term you choose, such as one year, three years or five years. CDs can be a good option if you want to set funds aside for short-term goals, such as a car or house down payment. One caveat: You’ll likely need to pay an early withdrawal penalty if you need to access your money before the CD maturity date.
Frequently asked questions
Is a Patriot Bond the same as a Series EE bond?
Yes, Patriot Bonds and Series EE bonds 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. Patriot Bonds purchased before May 2005 have a variable rate.
The current interest rate for Series EE bonds issued from Nov. 1, 2024, to April 30, 2025, is 2.60%.
Can you cash in Patriot Bonds at any bank?
No, not all banks redeem Patriot Bonds. 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.
How are Patriot Bonds taxed?
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 are taxed only on the federal level — you’re off the hook for state and local income taxes.