In recent months, the demand for Series I bonds has skyrocketed. This is due to the fact that the interest rate offered by TreasuryDirect for these bonds is currently at 9.62%. Investing in Series I bonds is a great way to secure your financial future and make a smart investment decision.
When it comes to Investing in Series I bonds, the first thing you need to know is the issue date of the bonds. According to TreasuryDirect, the issue date on your bonds — which determines their interest rate — will be the first day of the month in which the bonds are purchased.
In addition to Series I bonds, TreasuryDirect also offers Treasury bills, which have terms ranging from four to 52 weeks and can be purchased directly from the government at TreasuryDirect. As the bills mature, the government pays a fixed rate of return based on the amount of money invested.
TreasuryDirect announces new rates every May and November. I bond rates since 1998 have ranged from 0.4% to 5.4%. Currently, the rate is sitting at a very attractive 9.62%.
Demand for Series I bonds crashes TreasuryDirect ahead of key deadline to secure 9.62% rate. TreasuryDirect sold more than $27 billion in Series I bonds since Nov. 1. Now it's getting a makeover.
When deciding to invest in Series I bonds, it is important to familiarize yourself with the different types of bonds available. There are three types of I bonds. The first is the TreasuryDirect I Bond, which offers a fixed interest rate and is backed by the US government. The second type is the I Bond Plus, which offers a variable interest rate and is backed by the US government. The third type is the I Bond Plus Plus, which offers a higher interest rate and is not backed by the US government.
While you can purchase Treasury bonds and TIPS through a brokerage, you have to have an account at TreasuryDirect.gov for I-bonds and purchase them directly from the government. I bonds remain a great buy at the moment for anyone able to navigate the balky Treasury Direct site and purchase them.
The good news is that the process of purchasing an I bond through TreasuryDirect is relatively simple. All you need to do is create an account on the website and then follow the instructions to purchase the bonds. When you buy through TreasuryDirect — the government's website — you can purchase up to $10,000 in a single transaction and the Treasury Direct website is easier to navigate than it was a few years ago.
Investing in Series I bonds through TreasuryDirect is a great way to secure your financial future and benefit from the current attractive interest rate. It is important to remember that the issue date of the bonds will determine the interest rate, so you should be sure to purchase them as soon as possible.