Article

I-Bonds

August 22, 2026 · Aditya Gupta

Investing

Series I Bonds are US Treasury savings bonds that pay a composite interest rate combining a fixed rate (set at purchase, fixed for life) plus a variable inflation rate (resets twice yearly with CPI). 2022 inflation spike drove I-Bond rates to 9.62% — record interest. Recent rates around 4-5%. Purchase limits: $10K/person/year electronic via TreasuryDirect, $5K paper via tax refund. Minimum 1-year hold; redemption before 5 years forfeits 3 months of interest. Tax-deferred until redemption; state/local tax exempt; federal tax exempt if used for qualified education expenses (income limits apply). Best for inflation hedging and emergency fund supplement.

Investing

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