NEWS
BYTES
November 2007
http://www.treasurydirect.gov/
Annual
Purchase Limit For Savings Bonds Set at $5,000
The
annual limitation on purchases of United States Savings Bonds
will be set at $5,000 per Social Security Number, effective
January 1, 2008. The limit applies separately to Series EE and
Series I savings bonds, and separately to bonds issued in paper
or electronic form. Under the new rules, an individual can buy
a maximum of $5,000 worth of electronic and paper bonds of each
series in a single calendar year, or a total of $20,000, in
single ownership form. If paper bonds are issued in co-ownership
form, the limit applies to the first-named co-owner. All limits
are based on the issue price of the securities.
The
reduction from the $30,000 annual limit in effect for both series
since 2003 was made to refocus the savings bond program on its
original purpose of making these non-marketable Treasury securities
available to individuals with relatively small sums to invest.
Approximately 98 percent of all annual purchases of savings
bonds by individuals are for $5,000 or less. The minimum purchase
price for Series EE bonds is $25, whether purchased electronically
or in paper form; the I bond minimum purchase is $25 for bonds
issued in electronic form and $50 for those in paper form.
Savings
bond purchases have been subject to an annual limit since Series
E Bonds were first issued in 1941. Over the years, limits have
been adjusted by the Treasury Department several times and have
ranged from a low of $3,750 (at issue price) for Series E bonds
from 1941 through 1947 to the $30,000 (issue price) limit that
most recently applied to both Series EE and Series I bonds.
The limit was last set at $5,000 (issue price) in 1973.
