Stash Some Cash at 9.62% Before October 31?

annualized 9.62% interest rate for 6 months

I Series US savings I bonds (I bonds) purchased before 10/31/22 are paying an annualized 9.62% interest rate for 6 months. The rate decreases in November to an estimated 6.48% for the next 6 months. If you are looking for a place to park cash for more than 12 months, you may want to consider purchasing I bonds before the end of October (no later than 10/28/22).

Go to to purchase directly from the U.S. Treasury.

Points to Ponder:

  • I Series savings I bonds include a fixed rate and an inflation-adjusted rate, adjusted every 6 months.
  • These are 30-year I bonds but can be cashed at any time after 12 months.
  • You will pay a penalty for cashing in within the first 5 years. The penalty is equal to the last 3 months of interest. So, if you hold for 15 months, you will receive interest for 12 months.
  • You can purchase up to $10k per individual social security number or entity federal identification number. For example, a family of 5 could purchase $50K plus gifted amounts.
  • You can purchase additional amounts, up to $5k per individual social security number or entity federal identification number in paper I bonds via tax refunds.
  • Paper I bonds pre-2008 can be converted to electronic I bonds in your Treasury Direct account.
  • You can gift I bonds to increase the amount that can be purchased at the current high rates. Gifted I bonds will be held in your gift box until the beneficiary “receives” them.
  • I bonds are exempt from state & local taxes.
  • For more information, see 31 Code of Federal Regulations sec 363.16.
  • Gifts are irrevocable. The holding period starts when they are purchased, not when they are received. Gifts received count towards the annual purchase limit.

Disclaimer: The information provided above is not meant to be legal or tax advise. You should consult your CPA and attorney to determine the best course of action for your situation.

~Mitzi E. Sullivan, CPA

Mitzi E. Sullivan, CPA is a cloud based professional services provider specializing in cloud accounting.







Author: sullivancpa

With over twenty years in nonprofit, public, and private accounting, Mitzi has developed a strong talent for analyzing financial information and implementing creative solutions. Her technical abilities combined with her experience in working with personnel and clients enable her to offer the sound financial advice and practical accounting solutions that successful entities demand.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: