Given the current low interest rates and record setting inflation, many investors are looking for different ways to earn interest on their more liquid assets.

Enter the I bond.

A relatively unheard-of Treasury Department offering, the I-Bond is unique in that it’s rate is based on a combination of “Fixed Rate” and “Inflation Rate” to come up with it’s “Composite Rate”. The current “Composite Rate” the bond is paying is a whopping 7.12% annualized.

With any deal potentially this good, there are a few caveats and limitations investors should be aware of:

  • $10,000 annual purchase limit per person
  • It must be held for a minimum of 12 months
  • To get the current 7.12% annualized rate, the I-bonds must be purchased before May 1, 2022
  • The current rate is entirely comprised of the “Inflation Rate” portion of the composite, leaving no guaranteed “Fixed Rate” to fallback on if inflation goes back down to manageable levels
  • New composite rate calculated every 6 months

For more information on I Bonds visit:

We are always happy to schedule a time to speak with you if you have any questions about I Bonds and how they might work for you.