What is a Series I bond?

A series I bond is a non-marketable, interest-bearing U.S. government savings bond that earns a combined fixed interest rate and variable inflation rate (adjusted semiannually). Series I bonds are meant to give investors a return plus protection on their purchasing power.

What is a Series 1 savings bond worth?

Effective today, Series EE savings bonds issued November 2021 through April 2022 will earn an annual fixed rate of 0.10%. Series I savings bonds will earn a composite rate of 7.12%, a portion of which is indexed to inflation every six months.

How long does it take for a Series I bond to mature?

30 years
Series I savings bonds, commonly referred to as “I bonds,” fully mature after 30 years. However, you can redeem them as early as one year after purchase. If you do redeem them early, you’ll give up the last three months of interest, so you’ll need to make sure you really need the money if you want to cash out early.

Do you pay taxes on Series I bonds?

Series I savings bonds are subject to federal taxes. When you buy your Series I savings bonds, you will owe the federal government taxes on the interest income you earn during the time you hold it.

Are I bonds worth buying?

Buying as much as $45,000 in I Bonds is material for most of us but not worth the time for the ultra-wealthy. The best they can do is buy something similar known as Treasury Inflation-Protected Securities (TIPS), or TIPS Funds. While they are more liquid than I Bonds, I Bonds have key advantages over TIPS.

Which is better EE or I bonds?

According to the Treasury Department, if an I bond is used to pay for qualifying higher educational expenses in the same manner as EE bonds, the related interest can be excluded from income. Since the advent of series I bonds, interest rates and inflation rates generally have favored them over EE bonds.

How much is a $100 savings bond from 1991 worth?

A $100 bond issued in January 1991 is earning 4% now and is worth nearly $175.

Is now a good time to buy I bonds?

Chances are very good, however, that you’d prefer to buy I bonds in April 2022 or earlier to capture the 7.12% rate on new purchases through April 2022….Buy I Savings Bonds in January 2022.

September 2021 CPI-U:	274.310
* Extrapolated May 2022 I Bond inflation rate (at current monthly pace):	6.60%

Are I Bonds a good investment 2021?

Chances are very good, however, that you’d prefer to buy I bonds in April 2022 or earlier to capture the 7.12% rate on new purchases through April 2022….Buy I Savings Bonds in January 2022.

September 2021 CPI-U:	274.310
Implied May 2022 I Bond inflation rate (with no further changes):	3.28%