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Series I Bonds: A Small Dollar Investment With Big Returns

March 2022

Barbara O’Neill, Ph.D., CFP®
Distinguished Professor and Extension Financial Management Specialist Emeritus
Rutgers Cooperative Extension

On November 1, 2021, the U.S. Treasury department announced a 7.12% interest rate on new Series I savings bonds. This rate is in effect through April 2022 and is the second highest rate in Series I bond history. I bonds have been called "America's best-kept secret" and pay significantly higher interest rates than most savings accounts and CDs.

Consumers collectively lose billions of dollars annually in interest by not using higher-interest savings alternatives to bank accounts. Below are ten "need to knows" about Series I bonds:

If you want to hedge inflation and earn a higher-than-average return on a fixed-income asset, consider buying I bonds.