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Series I Savings Bonds Thumbnail

Series I Savings Bonds

Insights Investment

Posted by John Posey

If you have savings and cash yielding low interest as many do, you might consider Series I savings bonds right about now. They can be a good alternative to bank savings and money markets. Series I savings bonds can only be purchased directly from the US Treasury at www.treasurydirect.gov and the initial interest rate on new Series I savings bonds is 9.62% as of May 2022 through October 2022.

Here are a few quick facts:

  • Minimum purchase bond = $25; maximum purchase per calendar year = $10,000 online through TreasuryDirect
  • Minimum term of ownership = 1 year
  • Interest-earning period = 30 years or until cashed, whichever comes first
  • Early redemption:
    • Before 5 years, forfeit interest from the previous 3 months
    • After 5 years, no penalty
  • I bond interest rate is determined by two separate rates:
    • A fixed rate of return, which remains the same throughout the life of the I bond
    • A variable semiannual inflation rate based on changes in the Consumer Price Index for all Urban Consumers (CPI-U)

For more information on Series I bonds visit TreasuryDirect.gov.  You can start the account opening process here, https://www.treasurydirect.gov/RS/UN-AccountCreate.do. Series I savings bonds are a compelling cash savings alternative particularly given the possibility of inflation going forward. Keep in mind that the total/composite interest rate is subject to change twice a year (May & November) so you will want to check in on it periodically to make sure you can’t do better on your cash elsewhere as interest rates evolve.

Advisory services offered through Plains Advisory LLC, an investment adviser registered with the State of Nebraska. Insurance products and services are offered and sold separately through John Posey, a licensed insurance agent. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

Any information provided is designed to provide general information on the subjects covered, it is not, however, intended to provide specific legal, tax, financial or investing advice and cannot be used to avoid tax penalties or to promote, market, or recommend any plan or arrangement. Please note that Plains Advisory LLC does not give legal advice. You are encouraged to consult an attorney.