Last Call for Series I Savings Bonds! (Article)

October 3, 2022
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Last Call for Series I Savings Bonds!

If you’ve been looking for a safe place to park your cash, there currently isn’t a better combination of safety and return than Series I Savings Bonds. While the markets remain volatile and inflation erodes purchasing power, I Bonds offer you an option to grow your assets free of market risk while maintaining pace with inflation. Issued by the U.S. Treasury, I Bonds offer a return influenced by the rate of inflation. The current combined rate for the first six months you own the bond is annualized at 9.62%, which is a record high. Compare that to a national average interest rate of 0.13% for savings accounts, and you can see why Series I Savings Bonds have exploded in popularity.

So why the “last call” on I Bonds? To lock in a 9.62% annualized rate for the first 6 months of ownership, you must purchase the bond no later than October 28th, 2022. After that date, rates will reset to an interest rate to be released in November (estimates are around 6-7%). You can still purchase I Bonds after November, though likely at a lower rate. If you have cash (outside of emergency fund) that you can part with for at least twelve months, I Bonds are well worth your consideration.

If you decide to buy, here’s a few helpful tips:

  1. To purchase, go to treasurydirect.gov and set up an account
  2. You are limited to $10,000 annually per taxpayer of I Bonds that can be purchased (an additional $5,000 can be purchased through your tax refund)
  3. You must hold the bond for at least twelve months
  4. If you hold the bond for more than 12 months but less than 5 years, you forfeit the prior three months of interest (another reason to purchase before November!)
  5. I Bonds can also be given as a gift (same $10,000 limit per giftee)

Do you have questions on I Bonds and if they make sense for you? Reach out to our team of financial planners to get conflict free advice that will help stretch your dollars.

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MoneyAdvice@Work® is an employer-sponsored financial wellness benefit designed to connect employees to financial professionals who educate, advise, and coach without the sales pitch. Learn more about our service offering here. The summary/prices/quotes/statistics contained herein have been obtained from sources believed reliable but are not necessarily complete and cannot be guaranteed.  Past performance results are not necessarily indicative of future results. MoneyAdvice@Work® is offered through Francis Investment Counsel, a Registered Investment Adviser with the SEC. Francis Investment Counsel does not provide tax or legal advice.