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Are savings bonds making a comeback? This conservative investment option has found new life this year thanks to an interest rate that’s approaching 10%. Should you be moving money into these government-issued iBonds as soon as possible? We’ll give you all the details on these bonds and make sure you’re aware of all of the fine print.

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Show Notes

One of the most popular topics of conversation within investing right now is savings bonds. Yes, believe it or not, these government-issued bonds are making a comeback right now due to incredibly attractive interest rates.

As you can imagine, we’ve gotten more than a few questions about iBonds and whether they should be a part of an investment portfolio right now. So this episode of the podcast is devoted to answering all of those questions and to also point out some of the important details within these high interest Series I savings bonds in order to help you make the most informed decision possible.

For anyone that hasn’t seen these yet, you can read all about them on the Treasury Direct website and you’ll see that interest rates were sitting at 9.62% this summer. All of the details and everything you need to know can be found on that website, but like many other government sites, the user experience isn’t great so we’ll help you sort through it.

So is there a catch? With everything, there are some things that you need to at least be aware of before you invest. For example, the fixed rate is set for six months and gets re-evaluated based on where in inflation sits. At some point in time, those rates will drop as prices settle and your interest will also decline for this investment.

You should also know that the money isn’t tax-free, there are deposit limits, and they have requirements for how long you hold the bonds. All of these details will help you determine where the iBonds fit into your plan but always ask a financial advisor if you have further questions.

Listen to more of our conversation in the podcast or use the timestamps below to jump to a specific section. 

[0:50] – Summer travels

[4:58] – People talking about iBonds

[6:25] – Are the high rates legit?

[8:27] – Is there a catch?

[11:51] – What to be aware of

[15:44] – Is this tax-free money?

[17:16] – How does it fit into planning?

[19:44] – Mailbag question on interest rates and saving

[23:14] – Mailbag question on planning on your own

Thanks for checking out this episode. We’ll talk to you again soon.

“We work with people who have saved a lot up and they like to also hold excess amounts in cash. This is a good way to put some of that cash to work for you.”

-Scott Sierens