Series E Bonds 1941-1980: War Bonds to Savings Bonds Starting at $18.75

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What Are Series E Bonds?

Series E Bonds were first introduced in May 1941 as defense bonds to help fund the United States’ entry into World War II. These bonds were sold at 75% of their face value and matured at full face value after 10 years. Following the war, Series E Bonds continued as U.S. Savings Bonds until they were phased out in 1980 and replaced by Series EE "Patriot Bonds."

Initially marketed as war bonds, Series E Bonds became a patriotic investment tool, with President Franklin D. Roosevelt himself purchasing the first bond. Prior to Series E, Series A through D bonds were available between 1935 and 1941. After the U.S. declared war on Japan in December 1941, Series E Bonds were officially designated as "war bonds."

Key Highlights

• Issued in 1941 during WWII, Series E Bonds ranged from $18.75 to $10,000 in face value with a standard 10-year maturity.
• War bonds are government-issued debt instruments designed to finance military operations during wartime.
• Post-WWII, Series E Bonds transitioned into savings bonds and were replaced by Series EE bonds in 1980.

How Series E Bonds Worked

Series E Bonds were sold in denominations from $18.75 up to $10,000. As zero-coupon bonds, they did not pay periodic interest but matured at full face value after 10 years. The initial purchase price was 75% of the bond’s face value, making them affordable for a wide range of investors. Depending on the issue date, interest could be extended up to 30 or 40 years beyond maturity.

They were often called "baby bonds" due to their low minimum purchase price, making them accessible to everyday Americans eager to support the war effort. Larger denominations between $50 and $1,000 were also available for bigger investors.

War Bonds Through History

During World War I, Liberty Bonds were introduced but had mixed success initially. The U.S. Treasury Department then enlisted celebrities to boost patriotism and sales. Building on this, the Series E Bonds campaign mobilized bankers, business leaders, publishers, and Hollywood stars to promote bond purchases, quickly surpassing fundraising goals. The initial target was $9 billion, but the campaign raised $13 billion, with the seventh drive in 1945 generating a remarkable $26 billion in just 48 days.

After WWII, Series E Bonds became a staple of American investment as U.S. Savings Bonds—offering a safe, tax-advantaged, and affordable alternative to larger government or corporate bonds. While they no longer serve as a major revenue source for the government, holders of mature Series E Bonds can redeem them at banks based on current Treasury valuations. The final interest accrual for Series E Bonds ended in 2010.

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