MONEY, PERSONAL FINANCE, AND SAVING
Now Is a Better Time to Buy Series I US Savings Bonds
On May 1, 2022, the US Treasury increased composite interest rate for Series I Savings Bonds to 9.62%
“Don’t pass up something that’s attractive today because you think you will find something better tomorrow.” — Warren Buffett, Investor
In November 2021, I published the article Now is a Great Time to Buy Series I US Savings Bonds. From November 1, 2021, to April 30, 2022, the US Treasury paid an effective annual interest rate of 7.12% on Series I bonds (commonly called I bonds). No bank could approach this rate of return on savings accounts or certificates of deposit (CDs). Now, I am delighted to report that the Treasury raised the interest rate of I Bonds to 9.62% on May 1.
I bonds are safe and secure. That’s because they are backed by the full faith and credit of the United States government.
On May 1 and November 1 each year, the Treasury ties a variable portion of I (“inflation”) bond interest rates to the inflation rate. The highest inflation rate in forty years explains the interest rate increase. As reported by the US Bureau of…
