Are you looking for a savings tool or investment that will outpace inflation regardless of what the stock market and economy do? Are you looking to avoid the ups and downs of the market? Is the safety of your principal important to you? If you answered yes to any of these questions, Series I Savings Bonds may be right for you.

Series I Bonds are U. S. government savings bonds that pay a guaranteed interest rate equal to the rate of inflation and are updated every six months. I bonds currently pay the inflation-adjusted rate of 3.97% interest PLUS a fixed rate of 1.30% for a total of 5.27%. Here’s the good news, that 1.30% fixed rate will continue to be added to the inflation rate for as long as you own your bonds for up to 30 years, guaranteeing your savings will stay ahead of inflation. You must purchase your bonds before the end of April 2024 as the fixed rate on new bonds may change May 1, 2024!

Bond facts:

1. Your bond’s interest rate will adjust every six months after purchase and will earn the prevailing rate plus the fixed rate in effect when you buy your bond.
2. Federal taxes on savings bond interest may be deferred until redemption and are not subject to state or local income taxes.
3. I bonds may be electronically purchased for any amount between $25.00 and $10,000. There is a $10,000 annual limit per taxpayer plus up to $5,000 may be purchased with your federal tax refund. Interest can be tax-free if used for qualified educational expenses.
4. I bonds may not be redeemed during the first 12 months, and there is a three-month interest penalty if redeemed during the first five years.

Learn more and purchase bonds at http://www.treasurydirect.gov.