We first wrote about I-Bonds in an article included with our November Newsletter available at:

https://schwartzaccountants.com/2021/11/earn-a-guaranteed-and-risk-free-7-12-interest-rate-through-april-while-making-your-portfolio-a-little-more-conservative-by-purchasing-i-bonds

I-bonds are a great place to park some extra money if you are worried about the short-term prospects for the stock market (which are now at record high levels) and are nervous that increasing interest rates will cause bond funds to decline in value too. Please note that I-Bond purchases are limited to $10k per person per year, plus up to $5k additionally purchased with your income tax refund when you file your tax return.

According to: https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm:

A Series I savings bond is a security that earns interest based on both a fixed rate and a rate that is set twice a year based on inflation. The bond earns interest until it reaches 30 years or you cash it, whichever comes first. NEWS: The initial interest rate on Series I savings bonds is 4.28% percent through November 30, 2024.

More information on I-Bonds is available at: https://treasurydirect.gov/indiv/products/prod_ibonds_glance.htm

The treasury department resets I-Bond rates every six months based on the inflation rate the day the calculation is made.  Here are the prior interest rates paid:

  • 5/1/24 – 4.28%
  • 11/1/23 – 5.27%
  • 5/1/23 – 4.30%
  • 11/1/22 – 6.89%
  • 5/1/22 – 9.62%
  • 11/1/21 – 7.21%