What Is a Patriot Bond? A Guide for Current Holders and Investors
Written by
Aja McClanahan
Edited by
Elizabeth Constantineau
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If you’ve ever come across a Patriot Bond or inherited one, you might be wondering: What are Patriot Bonds, and are they still valuable today? These government-backed savings bonds were issued in the wake of the Sept. 11, 2001 attacks as a way for Americans to support national recovery efforts while earning interest on their savings.
Although Patriot Bonds are no longer issued, many are still in circulation and continue to earn interest. Here’s what you need to know.
Key Facts About Patriot Bonds
- Issued: Dec. 2001 to Dec. 2011
- Type: Special Series EE
- Interest: Fixed rates, compounding semi-annually for up to 30 years
- Value: Guaranteed to double after 20 years
- Redemption: At banks, credit unions or through TreasuryDirect
- Tax benefits: Tax-deferred interest, may be tax-free if used for education
- Availability: No longer sold, but many are still earning interest
What Is a Patriot Bond and How Does It Work?
A Patriot Bond is a Series EE U.S. Savings Bond issued between 2001 and 2011 to support national recovery after 9/11. Here are some points about how they work:
- Issued by the U.S. government: Backed by the full faith and credit of the U.S. Treasury.
- Purchase limits: Could be bought in denominations ranging from $25 to $10,000 per year.
- Interest earnings: Earned fixed rates of interest, compounding semi-annually.
- Maturity period: Earn interest for up to 30 years, with a guaranteed doubling in value after 20 years.
For example, if you bought a $50 Patriot Bond in 2002, it would be worth at least $100 by 2022, with more interest accruing until it stops earning in 2032.
Are Patriot Bonds Taxable?
Like all Series EE Savings Bonds, Patriot Bonds do offer some tax advantages:
- Federal tax-exempt interest: You don’t pay federal income tax on interest until you redeem the bond.
- Education tax exclusion: If used for qualified educational expenses, the interest earned may be tax-free.
- State and local taxes apply: Interest is taxable at the state and local level.
If you’re holding a Patriot Bond for education savings, check IRS guidelines to see if you qualify for a tax-free redemption.
Pros and Cons of Patriot Bonds
While Patriot Bonds offered several benefits to investors at the time, they also came with a few limitations. The table below outlines the key pros and cons.
| Pros | Cons |
|---|---|
| Backed by the U.S. government | Lower returns than stocks or mutual funds |
| Guaranteed to double in 20 years | No longer available for purchase |
| Tax benefits for education savings | Must be held for at least one year |
| National purpose tied to 9/11 support | Less flexible than newer bond options |
How To Cash In or Redeem a Patriot Bond
If you own a Patriot Bond, here’s how to redeem it and make the most of its value:
- Check the maturity date: Patriot Bonds earn interest for 30 years from the issue date.
- Use the TreasuryDirect Savings Bond Calculator: This will help you determine the current worth.
- Redeem at a bank or credit union: Most financial institutions can cash in savings bonds.
- Use TreasuryDirect for online redemption: If the bond is registered in your name, you can redeem it digitally.
- Report earnings on your taxes: Interest is subject to federal income tax unless used for educational expenses.
Good To Know
If your bond has matured, cashing it in promptly ensures you don’t miss out on potential earnings.
The End of Patriot Bonds: Why They Were Discontinued
In 2011, the U.S. Treasury stopped issuing paper savings bonds, including Patriot Bonds. This move was aimed at reducing costs and encouraging people to use TreasuryDirect, an online platform for buying and managing savings bonds.
Timeline of Patriot Bonds:
- Dec. 2001: First Patriot Bonds issued after 9/11.
- 2011: U.S. Treasury stopped issuing paper savings bonds, including Patriot Bonds.
- 2031-2041: Most remaining Patriot Bonds will reach full maturity and stop earning interest.
Alternatives To Patriot Bonds
Looking for a similar, low-risk investment? Consider these investment options:
| Alternative | Key Features | Best For |
|---|---|---|
| Series I Bonds | Adjusts for inflation, earns higher interest than EE Bonds | Investors looking to hedge against inflation |
| Series EE Bonds | Fixed interest rate, doubles in value after 20 years | Long-term savers wanting government-backed security |
| Treasury Bonds | Tradable, longer terms, higher yields | Investors seeking market flexibility & fixed returns |
Should You Still Hold or Cash In a Patriot Bond?
If you own a Patriot Bond, here’s what to consider:
- If your bond hasn’t matured: Holding onto it will let it continue to earn interest.
- If your bond is at or past maturity: Redeem it to avoid losing out on interest.
- Looking for new investments? Series I Bonds or Treasury Bonds offer better returns today.
Conclusion
If you own a Patriot Bond, it’s a safe, guaranteed investment that will continue earning interest until it reaches 30 years of maturity. While they’re no longer available for purchase, many are still earning interest and can be a smart, secure asset to hold.
If you have Patriot Bonds, check their current value and decide whether to hold, cash in or reinvest in a modern alternative.
FAQs About Patriot Bonds
Here are the answers to some of the most frequently asked questions regarding Patriot Bonds:- Are Patriot Bonds still available for purchase?
- No, Patriot Bonds are no longer issued. However, those purchased before 2012 can still be redeemed or held until maturity.
- How do Patriot Bonds compare to U.S. Savings Bonds?
- Patriot Bonds are U.S. Savings Bonds that support national recovery efforts. They share the same maturity and interest rules as Series EE Bonds.
- Can Patriot Bonds be sold or redeemed before maturity?
- Yes, Patriot Bonds can be redeemed early. You may lose three months of interest if redeemed within the first five years, however.
- How much is a $50 Patriot Bond worth?
- At a minimum, it will be worth $100 once it hits the 20-year mark. After that, it continues earning interest until it matures at 30 years.
- How long does it take for a $100 Patriot Bond to mature?
- Patriot Bonds mature after 30 years, but they are guaranteed to double in value at the 20-year mark.
- Do EE bonds really double in 20 years?
- Yes. Series EE bonds are guaranteed to double in value in 20 years, regardless of the fixed interest rate.
Information is accurate as of March 26, 2025.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- TreasuryDirect. "Using bonds for higher education."
- USA.gov. "U.S. savings bonds."
- TreasuryDirect. "Calculate the Value of Your Paper Savings Bond(s)."
- TreasuryDirect. "I bonds."
- TreasuryDirect. "EE bonds."
- TreasuryDirect. "Treasury bonds."
