Asking for a Friend - Where can I stash some cash and earn some interest?

January 3, 2022

Q. Where can I stash some cash and earn some interest?

A: If you have some spare cash on hand and won't need it for a few years, currently we are recommending I Savings Bond.

  • What are I Savings Bonds? According to the treasury direct website: "Series I savings bonds are a low-risk savings product. During their lifetime they earn interest and are protected from inflation."

  • What is the current rate?

    • 7.12% Annualized for bonds issued November 2021 - April 2022, a new rate is set every 6-months

    • "The rate on your I bond changes every six months and may be higher now than at first. Example: In May 2021, a new I bond had a rate of 3.54 percent. In November 2013, a new I bond had a rate of 1.38 percent. However, in May 2021 the bond issued in November 2013—the bond that originally had a rate of 1.38 percent—had a rate of 3.74 percent. It had a higher rate than the May 2021 bond."

  • Are their holding requirements?

    • Must own for 1 year

    • Early redemption penalties:

      • Before 5 years, forfeit interest from the previous 3 months

      • After 5 years, no penalty

  • Is there a minimum or maximum?

    • $25 is the minimum

    • Each year you can purchase up to $10,000 electronically + $5,000 paper with federal tax refund

    • You can also gift beyond this to others

To purchase or for more information on I Savings bonds, go to Individual - Series I Savings Bonds (treasurydirect.gov)

Do your friends ask you financial questions? Pass those questions on to us at AskRPG@rootedpg.com and we will feature them in our future newsletters and post them here.