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This inflation-proof bond is paying 9.62%. Here's how to buy it.
A step-by-step guide to buying inflation-indexed I series government savings bondshttps://www.washingtonpost.com/business/2022/06/22/step-by-step-guide-to-buy-i-bonds/
https://archive.ph/CbJqz
The government’s inflation-protection savings bond right now is like a Birkin bag — highly coveted. With the stock market crashing and inflation rising, people are desperately looking for a place to park their extra cash. Paying 9.62 percent, the relatively unknown inflation-proof Series I savings bond has become a hit with $17.5 billion sold in the six months ending in May, according to the Treasury Department. That’s compared with $364 million in I bond sales in all of 2020.
If you’ve got money sitting around earning a little more than 1 percent, if that much, I bonds are an attractive deal. Several callers to ASK-POST (855-275-7678), my toll-free line, have been asking about I bonds. There are a couple of things you should know before buying an I bond.
— You have to set up an account at TreasuryDirect.gov to buy the bonds.
— The interest rate on new Series I savings bonds is 9.62 percent through October 2022.
— Individuals can only purchase up to $10,000 in electronic I bonds each calendar year. If your purchase exceeds that limit, it can take up to 16 weeks for Treasury to process a refund. (You can also buy up to $5,000 in paper I bonds using your federal income tax refund).
— You pay the face value of the bond. For example, you pay $25 for a $25 bond.
— You can’t cash the I bond for at least one year. If you cash the bond before five years, you lose the previous three months of interest.
— You have to pay federal income taxes on the interest.
— The interest rate on new Series I savings bonds is 9.62 percent through October 2022.
— Individuals can only purchase up to $10,000 in electronic I bonds each calendar year. If your purchase exceeds that limit, it can take up to 16 weeks for Treasury to process a refund. (You can also buy up to $5,000 in paper I bonds using your federal income tax refund).
— You pay the face value of the bond. For example, you pay $25 for a $25 bond.
— You can’t cash the I bond for at least one year. If you cash the bond before five years, you lose the previous three months of interest.
— You have to pay federal income taxes on the interest.
Now, here’s a step-by-step guide to purchasing I bonds, which starts with setting up an account at TreasuryDirect.gov.......
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