I Bonds have a $10,000 per person annual purchase limit. TreasuryDirect’s gift feature has been described as a way to buy more. Below is what two sources say, an example with assumed numbers, and what could change. I did not verify current I Bond rates, so none are quoted.
How Gift Bonds Work
The Finance Buff says buying a gift doesn’t use your own $10,000 limit, that gift bonds sit in the buyer’s gift box with no maximum stay, and that the principal counts toward the recipient’s $10,000 limit in the year of delivery. It also says the rate is locked at purchase, not delivery, with gifts getting the same fixed and inflation rates as other bonds bought that month (The Finance Buff, last updated Feb. 2023). Tipswatch adds that gift-box bonds keep earning interest until delivered, and that Treasury has said a gift-box item is no longer the property of the giver (Tipswatch, Jan. 2025).
An Example With Assumed Numbers
Assume two spouses each buy $10,000 of I Bonds for themselves ($20,000 total) and each buys $10,000 as a gift for the other ($20,000 total). Total purchases are $40,000. Each delivered gift counts toward the recipient’s limit in the year of delivery, so delivery has to be spread across years.
Risks and Changes to Know About
- Both sources say a gift-box bond is no longer the giver’s property, so the recipient must be someone you trust.
- The Finance Buff reports that in November 2024 TreasuryDirect encouraged holders to empty their gift boxes.
- Both sources describe a January 2025 TreasuryDirect survey that floated a delivery window, with an unaccepted bond possibly becoming the giver’s property. Neither confirms it was adopted.
- Tipswatch recommends closing the gift-box approach, which is that author’s opinion. I did not find a decision to do so.
Where I’ll Add My Own View
In my view, because the rules have been under review, treating the gift box as something that may change is more realistic than treating it as permanent. I also did not verify claims about trusts, businesses or amounts above this example, so I removed them from this post.
Sources
- The Finance Buff: Buy I Bonds as a gift
- Tipswatch: TreasuryDirect survey on savings bonds as gifts (Jan. 8, 2025)
This article offers general information and my own opinions, not financial, tax, or legal advice. The figures in worked examples are assumed. Laws, tax rules, and products change and can differ by location, so check current official sources and talk to a qualified professional about your own situation.