I bonds: What you need to know about inflation-protected bonds, how to invest

A stack of money in this stock photo. (Pixabay.com, Pixabay.com)

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.

Here’s why:

  • 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.

Here’s how:

Want to learn more?

Here’s a helpful article from Money.com that explains how the TreasuryDirect.gov website has been performing, as well as how to invest even more money in paper I bonds. It’s worth a read.

About the Authors:

Passionate consumer advocate, mom of 3, addicted to coffee, hairspray and pastries.