What are they?
We have been asked a number of times now on I Bonds, and so wanted to provide some general information, as well as where you can go to find a full description on them and how they work. Similar to the EE Savings Bonds you are likely familiar with that Grandma and Grandpa used to give you for your birthday, I Bonds are also only provided directly from the government.
How do they work?
Instead of a fixed interest rate as in the case of those familiar EE Savings Bonds, I Bonds have a rate that changes every 6 months with inflation. Currently at the time of this writing (subject to change) the interest rate is 7.12%, which is why we have received several questions. They can only be purchased directly through the government at www.treasurydirect.gov, and the most you can purchase per individual in any one calendar year is $10,000. They cannot be sold for at least 12 months, there is a 3 month interest penalty if sold between 2-5 years, and can be held for up to 30 years.
For anyone considering a purchase of I Bonds, we would encourage a review of all the pertinent details here prior to making any decision. Please note this is not a recommendation for you to purchase I Bonds, but rather general information for educational purposes only due to the number of questions that we have received.