Connect with us

Financial News

I Bonds an Option to Consider



I Bonds to provide a record 9.62 percent return for the next six months.

I bonds, which are inflation-protected and nearly risk-free, will pay 9.62% until October 2022, the Treasury Department announced Monday. “It’s a watershed moment for I bonds,” said Ken Tumin, founder and editor of There are per-transaction limitations; you can buy up to $10,000 a year in I bonds through the Treasury Direct website. You can hold the security for up to 30 years, but if you cash them in before five years, you forfeit three months’ interest.

I bonds have two rate components: a fixed rate that doesn’t change for the life of the bond, and an adjustable rate that’s based on inflation and is recalculated every six months. The fixed rate for bonds purchased now will be 0.50%, while the variable, or inflation-adjusted, rate will start at 9.12%. Combined, that results in an initial yield of 9.62%.

I bonds, a deflation-protected and nearly risk-free asset, may now be even more appealing if you’re looking for ways to battle rising costs. The Treasury Department revealed that I bonds are paying a 9.62% annual return through October 2022 on Monday, the highest rate since their inception in 1998. The increase is based on the March consumer price index data, which showed annual inflation growing at a rate of 8.5 percent, according to the Department of Labor.

“It’s a watershed moment for I bonds,” said Ken Tumin, the founder and director of, which tracks these assets closely. I bonds, which are backed by the United States government, don’t lose value over time and offer monthly interest. This type of investment is a fantastic location for people to put money they don’t need right now, according to Christopher Flis, the founder of Resilient Asset Management. The fixed rate on these bonds remains the same for 30 years, allowing someone who bought I bonds with a higher fixed rate to outpace inflation for at least six months.

The beauty of this type of financial instrument is that you can use them for a number of different things, including college savings and supplementing your income in retirement, Tumin said. I bonds can only be obtained through TreasuryDirect, which is accessible to individuals with a bank account or credit card. You may buy $10,000 in paper I bonds using your federal tax refund, which is limited to $10,000 per calendar year for individuals. Buying this debt instrument through businesses, trusts, or estates is also an option.

I bonds have several benefits, but they also come with a few drawbacks. Despite the restrictions, I bonds still offer a unique way to save for the future and protect yourself against inflation. “For long-term savers, I bonds provide an attractive real return that is likely to outpace expected inflation,” says Christopher Flis

Another potential danger is reduced future returns. Their interest rates may change downward every six months, and you might want higher-yielding assets elsewhere, Gagliardi noted. If you decide to withdraw your money before the three-month penalty period ends, on the other hand, there’s only a one-year commitment with a three-month interest loss.


If you’re interested in I bonds, it may be a good time to buy them now. This type of bond may be a good investment for assets other than your emergency fund, according to Christopher Flis, a CFP and the owner of Resilient Asset Management in Memphis, Tennessee. “I believe that the I bond is an excellent option for people who do not require their cash immediately,” he continued, such as a substitute for a longer-term CD. However, these aren’t a viable alternative for long-term investments, according to Flis. “But I bonds aren’t a substitute for long-term funds,” he continued. “For example, if you’re saving for retirement, you may want to consider a Roth IRA or other investment account that will offer more flexibility down the road.” If you’re looking for a safe and secure investment with the potential for high returns, this may be the right choice for you.

The bonds are an investment option many may have overlooked in the past. With all the investment products available, the simplicity of I bonds and the current high yield make them an option well worth considering. The security of being backed by the full taxing power of the United States federal government makes them attractive.

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply


© Copyright 2022 | All Rights Reserved RISK DISCLAIMER There is a very high degree of risk involved in trading. Past performance is not necessarily indicative of future results. Financial Wars and all individuals affiliated with this site assume no responsibility for your trading and investment results. All the material contained herein is believed to be correct, however, Financial Wars will not be held responsible for accidental oversights, typos, or incorrect information from sources that generate fundamental and technical information. Options trading carries significant risk. Futures and futures options trading carries significant risk. Trading securities, security options, futures and/or futures options is not for every investor, and only risk capital should be used. You are responsible for understanding the risk involved with trading options. Prior to trading any securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options. The indicators, strategies, columns, and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of Financial Wars may have a position or affect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. All of our partners or affiliated companies are in no way associated with the proprietary information provided by the Financial Wars Trading Method or software. All returns are based off buy side analysis and do not include commission costs. All projections are based on current returns. The projections do not account for any possible draw down effects on performance and performance projections. Actual returns and projected returns may fluctuate over the course of the service. "VIP" or "Lifetime" designation refers to the lifetime of the product only and not to be assumed to be the lifetime of any individual. Any person who chooses to use this information as a basis for their trading assumes all the liability and risk for themselves and hereby and absolutely agrees to indemnify and hold harmless Financial Wars, its principals, agents and employees. As a Student and Chat Subscriber, we ask that you please cross check the information posted here. We ask that you challenge any information you feel is incorrect. We do not guarantee any of the information that is posted in the chat. All company names are trademarks or registered trademarks if their respective holders. Use of a mark does not imply any affiliation or endorsement by them.

Social Media Auto Publish Powered By :