May 12, 2022 Series I Savings Bonds Currently Earning 9.62%
Series I Savings Bonds (also called I-bonds) are currently earning 9.62%. The rate is determined in part by inflation, and changes every six months. The interest is tax-deferred until redeemed. If you have extra cash on the sidelines over your “rainy-day fund”, consider purchasing I-bonds to help your money keep up with inflation. These bonds can only be purchased directly from the federal government at treasurydirect.gov.
Below are some frequently asked questions:
What is an I Bond? An I-bond is a savings bond that earns interest based on combining fixed and inflation rates.
What interest does an I Bond earn? A combination of a fixed rate that stays the same for the life of the bond and an inflation rate that is set twice a year. For bonds issued from May 2022 through October 2022, the combined rate is 9.62%
Is it taxable? It is taxable for your federal return but not for state taxes.
How to buy? You create a login through the treasury direct website and purchase any amount between $25 and $10,000. You can buy up to $10,000 per person per calendar year.
When can I cash in my bonds? You can cash savings bonds in after 12 months, but if you sell them within 5 years the last 3 months of interest are lost.
You can go to Treasury Direct for more information, or to set up an account.
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