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)
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