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Series I bonds pay record 9.62% interest rate ⁠-- here's how to buy them

James Royal, Bankrate.com on

Published in Home and Consumer News

If you’re looking for an investment with a high interest rate, inflation protection and the safety of government backing, then Series I bonds could be an attractive addition to your portfolio. The interest rate on these bonds increases as inflation rises, ensuring that your payout keeps pace with rising prices and that you don’t lose purchasing power over time.

This inflation protection on I bonds has caused a stir among savers in the last year, as inflation has rocketed to the highest level in some 40 years, hitting 8.5 percent in March 2022. Savers have been scrambling for any way to protect their money from the ravages of rising prices.

Here’s how to buy Series I bonds, how these inflation-indexed investments work and what you need to watch out for. Plus, we’ll reveal a little-known tip that lets you invest even more in these special bonds.

How to buy Series I bonds

1. Determine if you qualify

The U.S. Treasury doesn’t let just anyone purchase I bonds, so you’ll need to see if you qualify to buy them.

 

You’ll need to be one of the following:

A U.S. citizen, even if you live abroad

A U.S. resident

A civilian employee of the U.S. government, regardless of where you live

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