How to Buy I Bonds: Get Returns up to 9%

During the past few months, you’ve probably noticed that prices have been on the rise. However, there’s one bright spot – an “I bond“. The current guaranteed rate of return is 6.89%. Let’s take a look at how to buy I bonds, how it works and how you can take advantage of them.

What’s an I Bond?

A government bond, the I bond, can be purchased directly from the Treasury. It’s basically a type of savings instrument that tracks your cash alongside inflation, which is to say that the rate of interest earns is about the same as the rate of inflation.

Over the past few decades, inflation has been low and pretty steady, so the return has also been low. During the past year, inflation has shot up, and in March 2022, it hit 8.5%. This was the highest inflation rate since 1981. With 0% interest, your savings would actually be losing value if they were just sitting there.

How to Buy I Bond?

In accordance with the Treasury, I bonds can be purchased by anyone with a social security number, provided they meet the following conditions: You must be a US citizen, either in the US or abroad, or you must be a US resident. You must also be an U.S. civilian employee. You can buy them online by setting up a Treasury Direct account, no matter where you live.

The instructions below will guide you through the buying of I Bonds:

  1. Visit the TreasuryDirect website at
  2. Click on “Open An Account”.
  3. Fill out an electronic account application. Your Social Security number should be available.
  4. Wait for account approval. If your account is not approved by the bank, you may have to submit a paper application with a Medallion Guarantee stamp, which you can get at most major banks. If you are required to go through this additional step, expect a delay of several weeks.
  5. Log in to your new account after it has been approved.
  6. At the top of the screen, click the “BuyDirect” tab.
  7. Under savings bonds, select “Series I“.
  8. Set the amount of the purchase and link it to a funding source. You can purchase anywhere between $25 to $10,000. Additionally, you can add $5,000 to your tax return to purchase paper I bonds.
  9. Click Submit to review the details of your purchase, click Submit again.

You should be able to see your purchase in your account one business day after making your purchase.

Interest Rates

Bonds of this type have a fixed interest rate set when they are purchased, as well as a variable interest rate set by the Treasury every six months. In April 2022, it has a combined rate of 7.1%. It is anticipated that the rate will go up possibly to 9% in the near future. And the best part is that you’ll get compound interest every six months. That’s a lot better than a standard savings account.

The interest on I bonds can last up to 30 years, but you have to keep them for at least one year before withdrawing. If you take them out before the five-year period, you lose three months of interest.

Give I bonds as gifts

Whether you are giving a I bond as a gift for New Baby, Birthday, Wedding, Graduation, Anniversary, Holiday, Thank You, New Job, Promotion, Congratulations for something else, or for no special occasion at all, you can give it to anyone.

Check out our blog on Recession.

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