Inflation Adjusted Series I bonds from Treasury Direct
If you haven’t purchased $10,000 in the Treasury’s inflation adjusted Series I bonds, we encourage you to by these through Treasury Direct if you have cash sitting in your savings or checking accounts not making much money. The Series I bonds will earn 6.98% for the first 6 months that you own them, and then the rate will adjust to whatever the current inflation rate is. Note: you need to hold these bonds for 12 months before you can redeem them. See our blog post from earlier this year about these bonds.
In early 2023, consider buying more Series I bonds (again with a limit of $10,000 per person). The 6.98% rate will accrue for 6 months and then adjust to whatever the Federal Reserve sets on May 1 for future interest credits.
Use form 8888 on your Federal tax return to buy another $5000 per tax payer from any Federal refunds for 2022. This is in addition to the $10,000 per person limit on the I bonds on the Treasury Direct website.
Be sure to link your Treasury Direct account to the eMoney software so that we can admire your growing balance.