Did you know that you can invest up to $10,000. individually annually at the current rate of 9.65%? This rate has been established thru October 2022. The bonds have an annual rate consisting of a fixed rate and a semi-annual inflation rate.
These funds are a low risk savings product that earn interest and are protected for inflation via the U.S. Treasury. Interest is earned monthly and compounded semi-annually. The interest and principal are paid when you cash in the bonds. Interest is taxable on the federal level; NOT taxable on the state or local level.
These bonds can be purchased via paper or electronic. The electronic verson has a minimum purchase of $25.00; maximum $10,000. each calendar year.
The bonds have a life of thirty years, however, you can “cash” them out after one year. There are no fees to purchase and no interest lost if held for five years. If you cash out within the five year limit you ONLY forfeit the last three month’s interest.
These bonds can be purchased by simply opening a Treasury Direct account that is protected by a password of your choosing.
Please check out this investment opportunity for the small and/or diversified investor. You can only invest up to $10,000. individually per calendar year. The rate will change again in November and April of each year.
Most of your concerns are addressed on the website. Should you have additional questions don’t hesitate to contact this office.
Make your own decision on whether these “I” Bonds should be part of your investment planning. Review: www.U.S.TreasuryDirect then under Individual-How to buy Series I.