You can own I Bonds if you have a valid U.S. Social Security Number and you're a resident of the United States, a citizen of the U.S., a civilian employee of the U.S. regardless of residence, or a worker in the U.S. (Note: If your career plans include becoming Secretary of the Treasury or the Treasurer of the United States, you should know that while you're in one of those jobs, you can't buy I Bonds!)

Unlike other securities, minors may own I Bonds. A parent, other relative, or friend can buy a bond for a minor who doesn't have a Social Security Number. In this case, or if the minor's SSN isn't known, the purchaser is required to provide his own Social Security Number, but he doesn't incur a tax liability since he's not named in the bond's registration.

Different Ways of Registering Bonds

I Bonds are registered Treasury securities and may be registered in the names of individuals in one of three ways:

• single ownership
• co-ownership OR
• beneficiary form.

SINGLE OWNERSHIP: Bonds registered in single ownership form have one owner. Only the registered owner may redeem the bond. If the owner dies, the bond becomes part of the owner's estate.

• Example:

  123 45 6789 [Social Security Number]

  John Q. Doe

CO-OWNERSHIP: Bonds registered in co-ownership form have two co-owners. Either co-owner may cash the bonds without the knowledge or approval of the other. If one co-owner dies, the other co-owner becomes the sole owner of the bonds.

• Example:

  123 45 6789

  John Q. Doe

  or Jane S. Doe

BENEFICIARY: In beneficiary form, there is one owner and one beneficiary. The registration includes the designation "P.O.D." (payable on death). Only the owner may redeem the bond during her lifetime. The beneficiary, if he survives the owner, automatically becomes owner of the bond when the original owner dies.

• Example:

  987 65 4321

  Jane S. Doe

  P.O.D. John Q. Doe

If a name is listed on a bond only as part of the address -- generally after "Mail to," that person has no ownership or beneficiary rights.

When you buy a bond, the owner's or first-named co-owner's Social Security Number is required. If you're buying a gift and don't know the person's number, you can use your own Social Security Number.

Although most bonds are issued to individuals, they may also be issued in the names of certain fiduciaries, including guardians and similar representatives of minors' and other living individuals' estates, as well as trustees of living owners' personal trust estates.

See also:

I Bonds for Education
I Bonds for Gifts
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