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    Investment

    Series I Savings Bonds

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    beginner · $0 - $50K

    I Bonds earn a rate tied to inflation and are backed by the US Treasury.

    Interest is tax-deferred until redemption, exempt from state/local tax, and tax-free if used for qualified education.

    Safe, no-fee investment.

    Annual Limit

    $10,000 per person per year (electronic, via TreasuryDirect)

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    Key takeaways

    • I Bonds earn a fixed rate plus an inflation rate that adjusts every 6 months, backed by the US Treasury.
    • Interest is tax-deferred until redemption, exempt from state and local tax, and can be federal-tax-free if used for qualified education (income limits apply).
    • The limit is $10,000 per person per year electronically via TreasuryDirect; the paper-via-tax-refund option ended January 1, 2025.
    • You must hold at least 1 year; redeeming before 5 years forfeits the last 3 months of interest.

    Requirements

    • Purchase through TreasuryDirect.gov
    • $10,000 annual limit per person (electronic)
    • Must hold at least 1 year
    • 3-month interest penalty if redeemed before 5 years

    How to Implement

    1. 1Create account at TreasuryDirect.gov
    2. 2Purchase up to $10,000 in I Bonds per year
    3. 3Hold for 1+ years (5 years to avoid penalty)
    4. 4Redeem when needed; report interest income

    The bottom line

    I Bonds offer inflation protection with tax-deferred, state-tax-free interest, in exchange for holding periods and a $10,000 annual cap. They complement rather than replace liquid savings.

    Frequently Asked Questions

    Featured Providers

    • TreasuryDirect.gov
    Educational Only: This information is for educational purposes. Consult a qualified financial advisor or tax professional before implementing.
    Last reviewed: April 2026

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    Sources

    1. Internal Revenue Service, Rev. Proc. 2025-32

      2026 inflation-adjusted amounts (tax brackets, standard deduction, estate & gift, FSA, credits)

    2. Internal Revenue Service, Notice 2025-67

      2026 retirement plan limits (401(k), IRA, SIMPLE, catch-up)

    3. Internal Revenue Service, Rev. Proc. 2025-19

      2026 HSA and HDHP inflation-adjusted limits

    Educational information only. Not financial, tax, or legal advice or a recommendation. Figures are drawn from the primary sources cited above; verify current amounts with the source before acting.

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