HOUSTON – Just as interest rates on loans and credit cards have gone up, so have the rates on savings accounts and CDs. If you are looking for the highest interest rate so your money can grow, you need to look at government I bonds.
- According to the Department of Treasury, the annualized rate is 6.89%. This rate is locked in for six months.
- Financial experts suggest viewing Series I bonds like an inflation-protected savings account. Unlike savings accounts, the interest earned from I bonds is not taxable at a state or local level and is only taxed federally when you take the money out.
- Only the Treasury Department issues the electronic bond.
- You can only put in $10,000 a year electronically.
- You can purchase I Bonds through TreasuryDirect.gov.
- There are ways to put in more money via paper bonds, but it’s worth reading up about that process.