Categories: Finance

Let’s Talk… I Bonds (Again)!!

Let’s Talk… I Bonds (Again)!!

The interest on I bonds (Series I Savings Bonds or Inflation-Protected Bonds) stands at 9.62% as of 9-9- 2022. If this is something that may interest you, you can visit treasurydirect.gov. Here are some things to keep in mind when deciding whether to buy series I savings bonds: 

  • First, you have to purchase the bonds through www.treasurydirect.gov. It’s easy to set up an account but beware of hold times if you need customer service.
  • Second, your money is not liquid for 1 year so this has to be money you can leave invested for at least that time.
  • Third, you can cash the bonds after a year, but you will lose three months interest as a penalty. The penalty goes away after 5 years.
  • Fourth, you are limited to buying $10k per calendar year. Someone can buy an amount up to that limit per year.
  • Fifth, the interest isn’t subject to state and local taxes but is subject to federal income tax.
  • Lastly, they are issued by the US Treasury, so they are backed by the full faith and credit of the US government.

In the end, for the majority of people I speak to daily, I bonds make sense to keep as part of a diverse portfolio because they offer a fixed rate of return and a fixed principal value. 

The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

memorial wealth group