If you’re looking for a safe and reliable investment that can earn you a decent return, you might want to consider investing in US I bonds. These bonds are issued by the US Treasury and offer a fixed interest rate that adjusts for inflation. Right now, I bonds are offering a particularly attractive interest rate of 6.89% until April 30. Please focus only on intermediate term savings as you must hold the bond at least one year, and any redemption before five years is subject to a three-month interest reduction.
What are I bonds?
I bonds are a type of savings bond issued by the US Treasury (https://www.treasurydirect.gov/) that offer a fixed interest rate plus an inflation rate. The interest rate is set every six months and adjusts for changes in inflation. I bonds are available for purchase online through TreasuryDirect and can be purchased in amounts ranging from $25 to $10,000 per year. You can also have a tax refund given in bonds. They have a maximum holding period of 30 years.
Why invest in I bonds?
I bonds are a safe and reliable investment that are backed by the full faith and credit of the US government. They offer a fixed interest rate that adjusts for inflation, which can be particularly attractive in times of rising prices. Additionally, I bonds are exempt from state and local taxes and can be used to pay for education expenses without incurring federal taxes.
Right now, I bonds are offering a particularly attractive interest rate of 6.89%. This interest rate is set to change on May 1st, and while the new rate has not been announced yet, it is expected to be much lower. By purchasing I bonds before May 1st, you can lock in the current rate and earn a guaranteed return that is higher than most other savings options.
How to invest in I bonds
To invest in I bonds, you can visit the TreasuryDirect website and set up an account. Once you have an account, you can purchase I bonds in increments of $25 up to a maximum of $10,000 per year. You can also choose to have your interest payments reinvested or paid out to you directly.
