Bond Basics: U.S. Savings Bonds

Bonds help diversify your portfolio and limit your exposure to risk. But they can be complicated.

To be eligible for the education exclusion, the bond must have been issued to the owner after the owner reached age 24.

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Income limitations also apply. For 2023, the exclusion is reduced when modified adjusted gross income (MAGI) exceeds $137,800

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if married filing jointly and $91,850 for all other filers. The exclusion is eliminated when MAGI reaches $167,800 if married filing jointly

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$106,850 for all other filers. These are 2023 limits and are adjusted yearly for inflation.

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There are three types of savings bonds in circulation EE bonds, I-bonds and HH bonds. HH bonds are no longer available for purchase

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There are two types of savings bonds sold by the Treasury: EE bonds and I-bonds. Series EE bonds are the most common

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and they are guaranteed to double in value after 20 years, regardless of changing interest rates. Series I-bonds don't share this guarante

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