EE vs I Bonds — Side-by-Side Comparison

Q: Which is better right now, EE bonds or I bonds?

It depends on your time horizon. If you can hold for exactly 20 years and want a guaranteed minimum return, EE bonds deliver their best value at the 20-year mark via the doubling guarantee (roughly 3.53% annualized minimum). If you want inflation protection and more flexibility over shorter periods, I bonds at 4.26% (May 2026) currently offer a higher short-to-medium-term yield. Neither constitutes a recommendation; consider your own situation.

Q: Can I own both EE and I bonds?

Yes. The $10,000 annual purchase limit applies to each series independently. You can buy $10,000 in electronic EE bonds and $10,000 in electronic I bonds in the same year, for a total of $20,000 in new savings bonds annually.

Q: Do EE and I bonds have the same tax treatment?

Yes — both are subject to federal income tax on the interest but exempt from state and local income taxes. Interest can be deferred until redemption or final maturity. Both may also qualify for the Education Tax Exclusion if used for qualified higher education expenses (income limits apply).

Q: What happens to an I bond if inflation goes negative?

If the CPI-U falls (deflation), the inflation component of the composite rate becomes negative. However, the composite rate is floored at 0% — your bond value cannot decrease. The fixed component is preserved and will boost returns once inflation turns positive again.

Last updated: June 11, 2026

Both Series EE and Series I bonds are US Treasury savings bonds — low-risk, government-backed instruments with a 30-year life. They differ primarily in how they earn interest: EE bonds pay a fixed rate, while I bonds combine a fixed rate with an inflation component that adjusts every six months.

Use the savings bond calculator to estimate the value of either series, or the sections below for a full comparison.

Quick Comparison Table

Feature	Series EE	Series I
Interest type	Fixed rate (locked at purchase)	Composite: fixed + variable inflation
Current rate (May–Oct 2026)	2.40% annual fixed	4.26% composite
Purchase price	Half of face value ($50 buys a $100 bond)	Face value ($100 buys a $100 bond)
20-year guarantee	Doubles in value (guaranteed minimum)	No doubling guarantee
Inflation protection	None (fixed rate only)	Yes — adjusts to CPI-U every 6 months
Annual purchase limit	$10,000 face value (electronic)	$10,000 face value (electronic)
Minimum denomination	$25	$25
Minimum hold	12 months	12 months
Early redemption penalty	Forfeit last 3 months interest (if < 5 years)	Forfeit last 3 months interest (if < 5 years)
Final maturity	30 years	30 years
Compounding	Semiannual	Semiannual
Federal tax	Interest taxed at redemption or maturity	Interest taxed at redemption or maturity
State/local tax	Exempt	Exempt
Rate update frequency	Set at purchase; never changes	Inflation component updates every May 1 & Nov 1

Sources: TreasuryDirect EE Bonds, TreasuryDirect I Bonds, TreasuryDirect Comparison Page (as of June 2026).

The Key Difference: Certainty vs. Inflation Protection

EE bonds offer certainty. If you hold one for exactly 20 years, you are guaranteed to receive at least twice your purchase price — regardless of what interest rates or inflation do over that time. The trade-off is that you're locked into a fixed rate with no upside if inflation rises.

I bonds offer inflation protection. The inflation component adjusts every six months, so when prices rise, your bond's interest rate rises with them. There is no doubling guarantee, but you're unlikely to be left far behind inflation. The trade-off is unpredictability: future composite rates are unknown until announced.

When Each Bond Tends to Make More Sense

These are general considerations, not recommendations:

EE bonds at 20-year hold: If you have a specific 20-year savings goal (college fund, retirement supplement) and want the certainty of a guaranteed minimum, EE bonds are straightforward. The effective annualized return at the 20-year guarantee is roughly 3.53%, regardless of the stated rate.
I bonds for inflation hedging: When CPI-U inflation is high, I bonds typically outperform EE bonds. During 2021–2023, composite I bond rates reached 7–9%. If inflation expectations are elevated, I bonds may offer higher near-term yields.
Flexibility: Both have the same 12-month minimum and 5-year penalty structure, so neither is materially more liquid than the other.

Estimating Your Bond's Value

The savings bond calculator on this site handles both Series EE and Series I. For the cent-accurate value, use the official TreasuryDirect Savings Bond Calculator.

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Frequently Asked Questions

Which is better right now, EE bonds or I bonds?

It depends on your time horizon. If you can hold for exactly 20 years and want a guaranteed minimum return, EE bonds deliver their best value at the 20-year mark via the doubling guarantee (roughly 3.53% annualized minimum). If you want inflation protection and more flexibility over shorter periods, I bonds at 4.26% (May 2026) currently offer a higher short-to-medium-term yield. Neither constitutes a recommendation; consider your own situation.

Can I own both EE and I bonds?

Yes. The $10,000 annual purchase limit applies to each series independently. You can buy $10,000 in electronic EE bonds and $10,000 in electronic I bonds in the same year, for a total of $20,000 in new savings bonds annually.

Do EE and I bonds have the same tax treatment?

Yes — both are subject to federal income tax on the interest but exempt from state and local income taxes. Interest can be deferred until redemption or final maturity. Both may also qualify for the Education Tax Exclusion if used for qualified higher education expenses (income limits apply).

What happens to an I bond if inflation goes negative?

If the CPI-U falls (deflation), the inflation component of the composite rate becomes negative. However, the composite rate is floored at 0% — your bond value cannot decrease. The fixed component is preserved and will boost returns once inflation turns positive again.