I bonds have surged in popularity as riskier assets slip.
The bonds are backed by the federal government, the principal doesn’t lose value and the bonds earn monthly interest through two parts, a fixed rate and a variable rate. Currently, the variable component will pay a record 9.62% annual rate through October, the U.S. Department of Treasury announced in May. This rate changes every six months.
“If you’re a person who is looking to get the highest yield possible right now without risk, and you don’t need this money for a least over one year, this is an investment that you should absolutely make your No. 1 priority on your list,” said personal finance expert Suze Orman.
Generally, the limit that a person can put into I bonds is $10,000 annually through Treasury Direct. But for those who want to sock away more than that, there are a few strategies available.
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