Series EE Bonds

• A Series EE Bond is a government security available to the everyday consumer for a purchase price of as little as $25. This initial purchase price is guaranteed, meaning a consumer is assured of recouping at least the original purchase amount. This type of savings bond takes five years to mature. A consumer cannot cancel a Series EE Bond once he purchases the security. He may, however, cash the savings bond in within six months of purchase if the bond has a purchase date of January 2003 or earlier, but will do so at a penalty. The waiting period for a bond purchased after 2004 is 12 months. Cashing the bond in early isn't such a big deal if all the consumer wants is his original investment.
  
  

Pending Bond Purchases

• An investor may cancel a pending purchase of a savings bond or other government security by visiting the federal government's Treasury Direct website. This requires setting up an investment account with Treasury Direct so the investor can view her pending bond purchase. An investor must delete a savings bond from a Treasury Direct account by 11:59 p.m. Eastern Standard Time of the day prior to the issue of the bond. An investor loses the right to cancel once the U.S. Treasury issues the bond.
  
  

Changing Payroll Deductions

• As of January 2011, the U.S. Treasury no longer allows bond purchases through payroll deduction programs. All existing bond purchasing programs were canceled effective December 2010. This effectively cancels any pending bond purchases for the consumer, though it does not cancel any bonds which are already in existence. A consumer must wait the minimum six to 12 months to cash the bond in at the penalty-reduced rate.
  
  

Holding On to Bonds

• A bond issued by the U.S. Treasury usually matures within five years of purchase. The interest rate on the bond is fixed, meaning inflation could outpace the growth of the bond's value, making worth less at its maturation date. There's no reason to cash a savings bond in early if cancellation of the bond isn't a possibility. Allowing the bond to mature can provide a consumer with a return on her initial investment.