Using your Income Tax Refund to Save by Buying U.S. Savings Bonds

The option to utilize your tax refund to buy U.S. savings bonds has been available since 2010, but has recently become more popular with the current inflationary market.   According to, a Series I Savings Bonds is a security that earns interest based on both a fixed rate and a rate that is set twice a year based on inflation.

Taxpayers are eligible to buy I Bonds in paper format by utilizing their federal income tax refunds. In order to do so, simply let your CPA know before filing your tax return. You will need to provide the name for whom you want the I Bond registered and the amount. Form 8888 is then added to your tax return in order to allocate your refund toward the purchase of the bonds.

The limit for paper I Bonds requested from your tax refund is $5,000 per year. The bonds must be made in $50 increments and can be registered to a maximum of three beneficiaries. Once the IRS processes your return, the request will be forwarded to the Treasury Retail Securities Site, where the paper bonds will process and be mailed to the address shown on your return.

If you have already filed your 2021 tax return, you may be eligible to buy I Bonds in electronic format. For more information on electronic bonds, visit