Earn 7.12% Risk-Free on US Treasury I-Bonds! The interest rate on US Treasury Series I savings bonds has been raised to 7.12%. At 7.12%, the initial interest rate on new Series I savings bonds is the second-highest interest rate ever. You can buy I bonds at that rate through April 2022.
Series I savings bonds are limited to a maximum of $15,000 per person per year. If you purchase these bonds as a gift, each recipient can receive up to $15,000. I-Bonds must be purchased directly from the US Treasury with up to $10,000 purchased online and $5,000 by paper each year. Except for the small purchase limit, these bonds are much better than bank deposits and bonds.
The interest rate is guaranteed for the first six months and after that will rise or fall depending on inflation, but never goes below zero. You have to hold onto your investment for at least a year, and if you exit before five years, you’ll lose three months of interest. These bonds aren’t tradeable and purchases are limited to U.S. citizens, residents, and employees.
I-bond income is free of state income tax, except for estate or inheritance taxes.
To invest directly or learn more, use these links:
This is extremely attractive now compared with other investment grade bonds and bank interest rates.