Using EE Bonds for Education

EE bonds have been one of the most popular investment methods for many years. With this type of bond, you can gain a steady return on your investment. In addition, you can use them for education expenses without paying taxes on them. Here are the basics of using EE bonds for education.


  • Redeeming--When you redeem your EE bonds, you have to use the proceeds for education expenses in the same year. You cannot hold the cash and then go to school a few years down the road and hope to get a tax break.
  • Age--In order to qualify for this exemption, you must have been at least 24 years old on the first day of the month in which you bought the bonds. 
  • Registration--When you plan on using savings bonds for a child's education, you need to have the bonds registered in your own name. You may put the child as a beneficiary, but you cannot put the bond in his or her name. If you plan on using the bonds for your own education expenses, you will also want the bond to be in your name. 
  • Qualified expenses--You have to use the bonds for qualified expenses at a certified university, college or other post-secondary institution. 
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