I bonds offer a high-return option for some savers

I bonds, an inflation-protected and nearly risk-free investment backed by the U.S. government, will pay 9.62% through October 2022, the U.S. Department of the Treasury announced.  With average savings account yields under 1%, and most one-year CDs paying less than 1.5%, I bonds could be an attractive savings vehicle for people looking to secure a higher return rate with the risk of value loss.  I bond rates change every six months, but they must be held a minimum of one year or a penalty will be owed.

There are only two ways to purchase I bonds: online through TreasuryDirect, limited to $10,000 per calendar year for individuals or using your federal tax refund to buy an extra $5,000 in paper I bonds. You may also buy more I bonds through businesses, trusts or estates. For example, a married couple with separate businesses may each purchase $10,000 per company, plus $10,000 each as individuals, totaling $40,000.

For more information on I bonds, please contact your ShindelRock tax professional.