WealthyNester.com | US Treasury I Bonds, I bond for inflation
Sky-high inflation?

NEWS: As of July 2022, the initial interest rate on new Series I savings bonds is 9.62 %. You can buy I bonds at that rate through October 2022.

Considering investing in I bonds? The Consumer Price Index (CPI) has been rising steadily at 8.5% over the last 12 months. Since I Bonds have yields adjusted by the prevailing inflation rate, you can actually buy some protection against rising (or soaring) inflation.

IF your absolute minimum goal with a U.S. Treasury is not to lose to inflation, lock in a greater-than-8% return with I Bonds…

WealthyNester.com | Treasury Direct LOGO


If you have a pension that takes a serious chunk out of your paycheck and you’ve always been of the mind that pension money is very “bond-like,” but recently you are seeing these bonds as something you could use basically as a better way to hold your *cash.*

I Bonds Q and A

The following are some of the most frequently asked questions about this investment.

How do I bonds earn interest?

An I Bond earns interest monthly from the first day of the month in the issue date.

Interest is added to the bond until the bond reaches 30 years or before, if you cash the bond, whichever comes first.

How does the US Treasury calculate the interest rate?

The interest on is a combination of fixed rate and the inflation rate.

The Treasury announces the fixed rate every six months (on the first business day in May and on the first business day in November). This rate then applies to all bonds issued during the next six months.

They set the inflation rate every six months (on the first business day of May and on the first business day of November), based on changes in the non-seasonally adjusted Consumer Price Index for all Urban Consumers (CPI-U) for all items, including food and energy.

What is the minimum I can invest?

$25 is the minimum. You can invest–to the penny–from $25 to $10,000 (electronic I Bonds).

It’s like Magic–BE a RAINMAKER–Try DRIP Investing

What is the penalty for withdrawing before five years?

You sacrifice 3 months’ interest if you withdraw it before 5 years.

How long must I hold an I Bond?

You can cash them after one year, but if you cash them before five years, you lose the previous three months of interest. (For example, if you cash one after 18 months, you get the first 15 months of interest.). They earn interest for 30 years unless you cash them first.

What happens if I invest more than $10,000 in a year?

You can only purchase up to $10,000 in electronic I bonds each calendar year.  If you buy more, exceeding that limit, they will process a refund, which may take up to 16 weeks.

I am having issues verifying my identity with Treasury Direct. Can you help me?

YES! See Buy I Bonds Now the Easy, Pain Free Way for ways to handle issues with Treasury Direct.

Can I purchase I bonds individually AND through a sole proprietorship?

Yes, trusts, estates, corporations, partnerships and some entities may invest.

Want more PASSIVE INCOME Ideas?

Can I give them as gifts?

Yes, but the purchase amount of a gift bond counts toward the annual limit of the recipient, not the giver. In a calendar year you can buy up to $10,000 in electronic bonds and up to $5,000 in paper bonds for each person.

What’s the difference between EE and I Savings Bonds?

EE bonds earn a fixed rate of interest and are guaranteed to double in value in 20 years. I bonds sold today earn a variable rate of interest that’s tied to inflation; as inflation occurs, the value of the bond goes up. The value of an I bond isn’t guaranteed to grow to a certain amount.


Photo by Matthew Henry on Unsplash