Treasury I Bonds @ 9.62%

The initial interest rate on new Series I savings bonds is 9.62 percent.

You can buy I bonds at that rate through October 2022.

TreasuryDirect.gov is a great resource for

researching and purchasing U.S. Series I Savings Bonds. The initial interest rate on new Series I savings bonds is 9.62 percent. You can buy I bonds at that rate through October 2022.


I Bonds can be purchased through October 2022 at the current rate. That rate is applied to the 6 months after the purchase is made. For example, if you buy an I bond on July 1, 2022, the 9.62% would be applied through December 31, 2022. Interest is compounded semi-annually.


A Series I savings bond is a security that earns interest based on both a fixed rate and a rate that is set twice a year based on inflation. The bond earns interest until it reaches 30 years or you cash it, whichever comes first.


For the first six months you own it, the Series I bond we sell from May 2022 through October 2022 earns interest at an annual rate of 9.62 percent. A new rate will be set every six months based on this bond's fixed rate (0.00 percent) and on inflation.


Here are a few questions and answers From TreasuryDirect.com:

Who may own an I bond?

How can I buy I bonds?

Two options:

  • Buy them in electronic form in our online program TreasuryDirect

  • Buy them in paper form using your federal income tax refund

What determines who owns an I bond and who can cash it?

How you register the bond at purchase determines who owns the bond and who can cash it. The registration is the name of the owner (either a person or entity), the Taxpayer Identification Number, and, if applicable, the second-named owner or beneficiary.


What do I bonds cost?

You pay the face value of the bond. For example, you pay $50 for a $50 bond. (The bond increases in value as it earns interest.)

Electronic I bonds come in any amount to the penny for $25 or more. For example, you could buy a $50.23 bond.

Paper bonds are sold in five denominations; $50, $100, $200, $500, $1,000


How much in I bonds can I buy for myself?

In a calendar year, you can acquire:

  • up to $10,000 in electronic I bonds in TreasuryDirect

  • up to $5,000 in paper I bonds using your federal income tax refund

Three points:

  • The limits apply separately, meaning you could acquire up to $15,000 in I bonds in a calendar year

  • Bonds you buy for yourself and bonds you receive as gifts or via transfers count toward the limit. Two exceptions:

  • If a bond is transferred to you due to the death of the original owner, the amount doesn't count toward your limit

  • If you own a paper bond issued before 2008, you can convert it to an electronic bond in your account in TreasuryDirect regardless of the amount of the bond. (The annual limit before 2008 was greater than today's limit of $10,000.)

  • The limits are applied per Social Security Number of the first person named as owner of a bond or, for an entity, per Employer Identification Number

Can I buy I bonds as gifts for others?

Yes.

Electronic bonds: You can buy them as gifts for any TreasuryDirect account holder, including children.

Paper bonds: You can request bonds in the names of others and then, once the bonds are mailed to you, give the bonds as gifts.


How much in I bonds can I buy as gifts?

The purchase amount of a gift bond counts toward the annual limit of the recipient, not the giver. So, in a calendar year, you can buy up to $10,000 in electronic bonds and up to $5,000 in paper bonds for each person you buy for.


 

Presently there are concerns about the TreasuryDirect platform and its functionality.


As the cost of living soars, one lawmaker is urging the Treasury Department to remove the barriers to buying Series I bonds. Rep. Abigail Spanberger, D-Va., on Thursday voiced concerns about “red tape and outdated systems” that may be preventing investors from buying the inflation-protected and nearly risk-free asset.


  • There’s been record demand for government Series I savings bonds, an inflation-protected and nearly risk-free asset that offers an eye-popping 9.62% annual return through October.


  • However, it’s not easy to purchase these assets through TreasuryDirect, a 20-year-old platform, and investors may experience other pain points, experts say.


 

If you'd like to learn more about the Treasury Inflation Savings Bonds and how they may be a benefit to your investment portfolio reach out now for a free consultation.







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