US Savings Bonds

Archive for the ‘Series I Bonds’ Category

Series I Savings Bonds in Physical Form

Series I Savings Bonds may be ordered in physical form at many local financial institutions. 

After the investor completes a purchase order and pays for the bond, the Series I savings bond certificate is mailed to the investor within three weeks. 

Each Series I savings bond certificate features a prominent American who has contributed to the history of the United States. 

The Series I Savings Bonds Certificate denominations are depicted below: 

Series I Bonds advantages are discussed in this section of Us Savings Bonds Information website. Series i US Savings Bonds have many advantages. Many of the advantages of Series I Bonds are shared by other US Savings Bonds.

Series I Bonds Advantages

• TIPS are guaranteed by the full faith and credit of the U.S. government.

• TIPS are exempt from state and local income taxes.

• As long as the Series I Bonds are held for a minimum of one year, the investor can redeem Series I Bonds at any time up to 30-years from the date of purchase.

• No Federal Income taxes are assessed on the accrual and compounding of interest until the investor redeems the bonds.

Series I Bonds Considerations and Drawbacks

• CPI inflation may not match the inflation rate of the investor’s own market basket of purchases.

• The bonds must be held for a minimum of one year and are not freely tradeable.

• A 3-month foregone interest penalty is assessed if the security is redeemed within 5 years.

• The maximum allowable purchase amount is $30,000 per person per year. Advantages Considerations and Drawbacks

Note: (1) Plus the CPI-U rate of inflation

What are Series I Bonds?

Series I Bonds, also called Series I Savings Bonds or Series I government bonds are also popular US Savings Bonds along with Series E and EE Savings Bonds. In the past, you can only purchase and invest in Series I Bonds in paper form. Nowadays, you can invest in the US government ’s Series I Bonds electronically.

How are Series I Bonds sold?

The US government ’s Series I Bonds are sold at face value. The maximum amount of Series I Bonds you can purchase in a year is currently $30,000

How to buy Series I Bonds?

Series I Bonds can be purchased in denominations of:

• $50,
• $75,
• $100,
• $200,
• $500,
• $1,000,
• $5,000, and
• $10,000.

Interest rates on I Bonds and redemption

The interest rates on I bonds are forfeited on the most recent 3 months’ interest if you buy the US Series I Bonds and then redeem them within 5 years. If you hold onto US Series I Savings Bonds for more than 5 years, there is no penalty on the interest on I bonds.