Investing in Series I Bonds: A Smart Move for Savvy Investors
If you’re looking for a safe and reliable investment option, Series I bonds may be just what you need. The U.S. Department of the Treasury recently announced that Series I bonds will pay a 5.27% annual interest rate from November 1 through April 2024. This is an increase from the previous 4.3% rate offered since May.
Tied to inflation, investors can take advantage of this high rate by purchasing Series I bonds anytime from November 1 through the end of April 2024. This is the fourth-highest rate for I bonds since 1998, making it an attractive investment option for those looking to grow their savings over time.
How do you calculate I bond rates? The Treasury adjusts I bond rates every May and November, with two components to the yields: a variable and fixed portion. The variable rate changes every six months based on inflation, while the fixed rate remains constant for the life of the bond.
If you already own I bonds, your rate change will depend on the bonds’ issue date. Rates reset annually on March 1 and September 1 for bonds purchased in September of any year. The fixed rate stays the same for the life of the bond, so your actual rate may differ from the headline rate.
Before buying I bonds, it’s important to consider your financial goals. While I bonds offer a high rate of return, there are restrictions on accessing your funds. It may be best to use I bonds as a supplement to other more liquid savings options like checking accounts or money market funds.
Overall, investing in Series I bonds can be a smart move for those looking for a secure and reliable way to grow their savings. With a high annual interest rate and the potential for long-term growth, I bonds are worth considering for savvy investors. Don’t miss out on this opportunity to boost your savings and secure your financial future.
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