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Title 31 — Money and FinanceRelease 119-73

§3106 Retirement and savings bonds

Title 31 › Subtitle SUBTITLE III— - FINANCIAL MANAGEMENT › Chapter CHAPTER 31— - PUBLIC DEBT › Subchapter SUBCHAPTER I— - BORROWING AUTHORITY › § 3106

Last updated Apr 6, 2026|Official source

Summary

With the President’s approval, the Treasury Secretary can sell retirement and savings bonds. The bonds must be sold for less than their face value and must come due in at least 10 years but not more than 30 years. The money from selling them must be used for spending allowed by law. The Secretary can buy back, redeem, or make refunds as allowed by law. The interest is the difference between what you pay and what you get when you redeem, and it is treated as interest for tax purposes. The Secretary may let people keep bonds after they mature and keep earning interest at similar rates. Other related rules in the law apply if they fit with these rules. The Secretary can limit how much one person may hold in a year, but that limit must be at least $3,000.

Full Legal Text

Title 31, §3106

Money and Finance — Source: USLM XML via OLRC

(a)With the approval of the President, the Secretary of the Treasury may issue retirement and savings bonds of the United States Government and may buy, redeem, and make refunds under section 3111 of this title. The proceeds from the bonds shall be used for expenditures authorized by law. Retirement and savings bonds may be issued only on a discount basis. The maturity period of the bonds shall be at least 10 years from the date of issue but not more than 30 years from the date of issue. The difference between the price paid and the amount received on redeeming a bond is interest under the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.).
(b)With the approval of the President, the Secretary may allow owners of retirement and savings bonds to keep the bonds after maturity and continue to earn interest on them at rates that are consistent with the rate of investment yield provided by retirement and savings bonds.
(c)section 3105(c)(1)–(5) of this title applies to this section. section 3105(c)(6) and (d) and 3126 of this title apply to this section to the extent consistent with this section. The Secretary may prescribe the maximum amount of retirement and savings bonds issued under this section in a year that may be held by one person. However, the maximum amount shall be at least $3,000.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

1982 Act Revised SectionSource (U.S. Code)Source (Statutes at Large) 3106(a)31:757c–2(a)(1st sentence), (b)(1)(1st sentence), (c)(1st sentence).Sept. 24, 1917, ch. 56, 40 Stat. 288, § 22A(a)–(c)(1st sentence), (d); added Nov. 8, 1966, Pub. L. 89–800, § 5, 80 Stat. 1514. 3106(b)31:757c–2(b)(1)(2d sentence words after 1st comma), (2). 3106(c)31:757c–2(a)(last sentence), (b)(1)(2d sentence words before 1st comma, 3d, last sentences), (d). In subsection (a), the words “In addition to the United States savings bonds authorized to be issued under section 757c of this title” are omitted as surplus. The words “through the United States Postal Service or otherwise” are omitted as surplus and unnecessary because of 39:411. The words “and may buy, redeem, and make refunds under section 3111 of this title” are added because of the restatement. The words “and to retire any outstanding obligations of the United States bearing interest or issued on a discount basis” are omitted as unnecessary because of section 3111 of the revised title. The words “as the terms thereof may provide” are omitted because of the restatement. In subsection (b), the word “conditions” is substituted for “terms” for consistency in the revised title and with other titles of the United States Code. The words “by

Regulations

” are omitted as unnecessary. The words “at their option” are omitted as surplus. In subsection (c), the words “section 3105(c)(1)–(5) of this title applies to this section” are substituted for 31:757c–2(a)(last sentence) and (b)(1)(2d sentence words before 1st comma, 3d sentence) to eliminate unnecessary words. The words “by

Regulations

” are omitted as unnecessary. 1983 Act Revised SectionSource (U.S. Code)Source (Statutes at Large) 3106(b)31 App.:757c–2 (b)(1) (2d sentence).Sept. 3, 1982, Pub. L. 97–248, § 289(a)(2), 96 Stat. 571.

Editorial Notes

Amendments

1986—Subsec. (a). Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”. 1983—Subsec. (b). Pub. L. 97–452 struck out provisions that the issue price of retirement and savings bonds and the conditions under which they could be redeemed could give an investment yield of not more than 5 percent a year compounded semiannually.

Reference

Citations & Metadata

Citation

31 U.S.C. § 3106

Title 31 — Money and Finance

Last Updated

Apr 6, 2026

Release point: 119-73