I bonds now offer 6.89% annually

The U.S Department of the Treasury announced today that new I bonds will pay 6.89% through April 2023. We have discussed I bonds here and here. According to CNBC, a record $979 million of I bonds was sold on Oct 28th, close to the total sold from 2018 to 2020.

The fixed rate on new bonds has increased to 0.4%, and the variable rate based on the semi-annual inflation rate decreased to 6.48%. Here’s a handy FAQ from the same CNBC article. Our first article covered more of the I Bond.

Frequently asked I bond questions

1. What’s the current interest rate? 6.89% annually

2. How long will I receive 6.89%? Six months after purchase

3. What’s the deadline to get 6.89% interest? Bonds must be issued by April 30, 2023. The purchase deadline may be earlier

4. What are the purchase limits?$10,000 per person every calendar year, plus an extra $5,000 in paper I bonds via your federal tax refund

5. Will I owe income taxes? You’ll have to pay federal income taxes on interest earned, but no state or local tax


We were fortunate to beat the deadline and add more money on Friday at 9.62% for the next six months.

Do I Bonds make sense now?

Short answer: we think so, for a portion of your portfolio. Higher interest rates and housing prices will put a damper on real estate. November to May is seasonally a good time for stocks and stocks are highly beaten up from prior bubble levels.

If you have limited funds, a $25 I Bond to start is easy. You can set up regular payments to save. It’s certainly better than a savings account if you don’t need the money. Let’s compare.

  • Our Fundrise account this year: 4.9%
  • Upgrade’s Premier Savings Account: 3.5%
  • Best savings account on Bankrate: Lending Club 3.12%
  • Our annuities: 0.00%
  • Nasdaq YTD: -29.77%❗️
  • Bitcoin YTD: -55.80%‼️

When you look at that, 6.89% for the next 6 months while preserving purchasing power is decent.

Sincerely yours,


Published by smilingdad

My story is one of tragedy and redemption. We've made many mistakes along the way regarding our money. Our goal here is to show you how to take care of your money life long, and as much as we can, help the Earth along the way. I call it sustainable personal finance and ethical capitalism. Currently, I am a part time writer for Cleantechnica and part-time licensed financial professional, along with being a full-time dad.

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