Make At Least 8% on Your Money Over the Next 12 Months…Guaranteed!

This is one subject I never get tired of writing about. It’s the “how do I get a huge interest rate on my money” deal. I know you may think I am making this up, but I’m not. Even though I have written about this subject several times before, I am truly amazed that there are still multi-millions who don’t pay any attention or just don’t believe it. Do you think that I would tell you about making 8% plus on your money and take no risk just as a joke here? The time has never been better to do it and it is the silver lining right now in the inflation picture!

Money clip with $100s representing money made with series I US savings bonds

High Inflation Has One Good Result

Given the high inflation numbers reported this week with the Consumer Price Index rising 8.5% over the last 12 months, you might think that any interaction with the U.S. Treasury would not be a way to protect and grow your money right now. That thinking is waaaaaaaaaaay wrong. In fact, using the Treasury is as good as gold. That is because there is a little something called Series I US Savings Bonds. Everyone can buy and take advantage of these, and get a rate of interest that hasn’t been seen in almost…forever! You can lock it in, sit back, and see your money really grow no matter what the final inflation numbers wind up being for 2022!

Magic Series I US Savings Bonds

I bonds are US savings bonds whose yields are adjusted by the prevailing inflation rate. They have their yields adjusted twice a year, in May and November, based on the Consumer Price Index’s previous 6-month change. Its current yield, set last November 2021 was 7.1% (twice the CPI’s change from April to September last year).

This time, in May 2022, the rate will be even higher. Based on this week’s inflation report, the yield should be set at 9.6% on May 1 (twice the CPI’s change from October through March). The Treasury Department will announce the new rate in the next few weeks. Let that sink in for just a second.

You can purchase an I bond and get paid 9.6% interest on it for the next six months at least!

The Only Question Is: Buy Now in April or Wait until May?

The answer to that question is just a tad tricky. That’s because the bonds’ inflation-adjustment factor is reset every six months based on the initial month of your purchase. So if you purchase an I bond now, the interest you will earn over the next six months will be the rate the U.S. Treasury set last November, 7.1%. And during the next six-month period beginning this May and ending in October your rate will be equal to the rate the U.S. Treasury sets in May. That rate is expected to be 9.6%. That makes it average out to 8.4% if you buy now, in April.

But what about if you wait until May to make a purchase? Can you do even better? The answer depends on what the next six-month inflation rate will be over the summer and into the fall. That is the next time the Treasury will reset a new I bond interest rate. If it’s lower than 7.1%, then you would be better off buying an I bond this month. If it’s higher, then you should wait until May. The problem is that no one actually knows the answer, but even so, you will make at the very least 8% plus no matter what if you buy before May. Not too shabby, is it?

How to Purchase I Bonds Now

One word of caution if you plan to buy an I bond now: April 30 this year is a Saturday, so don’t wait until then because the Treasury will be closed that day.

The last day to purchase Series I US Savings Bonds for April is April 29. The order has to be in by April 28 at the very latest.

If you don’t already have an account set up on the Treasury site, it can sometimes take slightly longer to process. If you already have an account, then you are fine in that regard. Here is the link you need to get all the info and process your request for I Bond purchases.

You Won’t Get Rich But You Will Protect Yourself

There are some important things to know and understand about I bonds.

First, you can cash the bond after 12 months. However, if you cash the bond before it is five years old, you lose the last three months of interest. Note: If you use Treasury Direct or the Savings Bond Calculator to find the value of a bond less than five years old, the value displayed reflects the three-month penalty; that is, the amount of the penalty has been subtracted already.

Second, you can’t purchase an unlimited quantity of I bonds and you can’t purchase them in an IRA. You can purchase up to $10,000 of such bonds each year ($20,000 per married couple) and an additional $5,000 per year in paper bonds with your tax refund too, making a couple able to buy a maximum of $25,000 a year! (The bonds are primarily purchased electronically)

That’s a good strategy if you can swing it, but even if you do it on a smaller scale, it is a great way to earn “real” money risk free!

In case you were wondering, I bonds can be earning money for 30 years at adjusting rates and never, ever will be beaten by inflation. They can’t be, because they always have the inflation factor added to the rate even when the rate of interest is “0%”. They can work long term if that’s what you want to do. I first purchased I bonds in 2001 and I have beaten inflation ever since with these investments!

Final Thoughts

If you worry about inflation and whether it may get even worse before it gets better, Series I US Savings Bonds will ease your mind. That’s why they are such a wonderful way to protect you right now. Even if $10,000 or $20,000 is not in your means, you can but I bonds for as little as $25 and up, so there are I bonds for every budget. Why not use them as gifts, even if just for you, and reap the rewards now.

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Series I Savings Bonds: Save Money and Guard Against Inflation
This Is the Best Investment for Your Money Right Now

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