Series Bonds Advantages | US Savings Bonds

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May 12th, 2010

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.

TIPS (Treasury Inflation Protected Securities) offer a form of protection against inflation in the U.S. Consumer Price Index.

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.

Depending on the six month window when the Series I Bonds are purchased, the investor locks in a specific real rate for the life of that Series I bond.

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

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

Series I Bonds period of issuance	Fixed real rate (1)
9/98 – 10/98	3.40%
11/98 – 4/99	3.30%
5/99 – 10/99	3.30%
11/99 – 4/00	3.40%
5/00 – 10/00	3.40%
11/00 – 4/01	3.40%
5/01 – 10/01	3.00%
11/01 – 4/02	2.00%
5/02 – 10/02	2.00%
11/02 – 4/03	1.60%
5/03 – 10/03	1.10%
11/03 – 4/04	1.10%

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