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.