The record rate of return for Series I savings bonds has cooled alongside inflation figures, with the I bond paying 6.89% annually as of November.
That’s down from 9.62% from May through October – the largest rate of return in the bond’s history, which dates back to 1998. It’s still nearly double the return rate from May-October 2021 (3.54%), which had been the highest figure in a decade (4.60% in May 2011). You can find historical earning rates at this link (PDF format).
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For full details about this investment option, visit MOAA’s “What Are I Bonds?” webpage. Some basics:
- The bonds are only available for purchase via TreasuryDirect.gov or via IRS Form 8888, which you can file with your taxes to purchase bonds with your tax refund. The IRS form is the only way to secure a paper bond; Treasury Direct purchases are digital-only.
- You’re limited to $10,000 in Treasury Direct I bond purchases and $5,000 in paper bonds per year.
- You can buy bonds as gifts – these purchases do not count against your individual limit, but they do count against the recipient’s limit. Paper bonds are available in $50, $100, $200, $500, and $1,000 denominations. Digital bonds can be issued in any amount over $25 up to the $10,000 limit.
MOAA does not promote specific products or services and does not have tax or estate planning specialists on staff. Consult your tax specialist or estate planner on these issues.
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