by Kevin Janiec CFP®, MBA
You have likely heard plenty about the current inflationary environment.
However, you might not have heard much about Series I Savings Bonds (I bonds).
Here’s a timely FYI on what I Bonds are and how they work:
- I bonds are an inflation-protected, interest-bearing savings instrument that can be purchased directly through the US Treasury.
- The yield is calculated and compounded semi-annually in May and November based on a fixed rate and inflation metric (CPI). Current rates on these vehicles are available at gov.
- There is a $10,000 purchase limit per person (children included) in each household on an annual basis. These investments can be purchased through an individual account at gov.
- There is a 1-year mandatory holding period. To redeem these bonds in less than 5 years, you pay a penalty of the previous 3 months’ interest. After 5 years, you can redeem the bonds penalty-free.
- You cannot purchase these investments within an IRA, 401(k), or joint account.
Additional Frequently Asked Questions are available at TreasuryDirect.gov.
As we meet in the coming months, we can discuss Series I Bonds further. In the meantime, if you have any questions, don’t hesitate to reach out.
Investment Advice offered through FC Advisory LLC, a registered investment adviser doing business as “New Wealth Project” and as “Financial Coach”. This content is provided for informational purposes only. Views and opinions expressed are those of the authors and do not necessarily reflect those of FC Advisory, LLC. Information provided is not and should not be interpreted as investment, tax, legal, or other professional advice or recommendation by FC Advisory, LLC or the members of our firm. Always consult the appropriate professional regarding your specific situation before implementing any options presented or inferred. FC Advisory LLC, All rights reserved.
