This week we are talking about I bonds, purely to educate and inform on what they are as we have been getting a lot of questions recently. Series I Savings Bonds are a government-issued bond earning interest based on a fixed rate plus a variable rate based on inflation. This savings bond is issued directly by the U.S. Treasury and cannot be held at any brokerage firm or sold at banks.
- Per person maximum annual investment = $10,000 (plus $5,000 using federal income tax refund)
- 30-year maturity. Cannot be redeemed prior to one year. If redeemed after one year but before five years, the holder forfeits the last three months of interest.
- The current variable rate (based on CPI-Consumer Price Index) on the new Series I Bond changed in May to 9.62%. This rate will be good through October.
- The variable rate resets every six months.
- To buy Series I Savings Bonds go to TreasuryDirect.gov . They are NOT SOLD IN OPEN MARKET, BANKS or RAYMOND JAMES.