Series I Savings Bonds Currently Yield 7.12%

iBonds are currently yielding 7.12% and that rate may go as high as 9.62% next month! We can’t help you buy them, and you can only buy $10-15k per social security number per year, but if you have cash to put to work you may want to consider iBonds at the moment for their combination of current yield and safety. In order to purchase iBonds you would head over to treasurydirect.gov and open an account. You could put $10k to work now, and if you are expecting a tax refund, you can buy another $5k in paper bonds with that.

Do note that the inflation rate resets on these bonds every 6 months, so if inflation calms down the yield will also go down. Also note that you can not sell the bonds in the first year and then if you sell them between years 1 and 5, you will forfeit 3 months of interest. After 5 years there is no penalty or liquidity restriction.

Even if you only hold your iBonds for the minimum one year period you would earn 5.34% (if the inflation component stays at 7.12% at the next reset).

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