Investment
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)
Tax Benefit
Tax-deferred interest, state tax exempt, education tax-free option
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
- 1Create account at TreasuryDirect.gov
- 2Purchase up to $10,000 in I Bonds per year
- 3Hold for 1+ years (5 years to avoid penalty)
- 4Redeem when needed; report interest income
Frequently Asked Questions
Featured Providers
- TreasuryDirect.gov
Related investment strategies
Sources
- Internal Revenue Service, Rev. Proc. 2025-32
2026 inflation-adjusted amounts (tax brackets, standard deduction, estate & gift, FSA, credits)
- Internal Revenue Service, Notice 2025-67
2026 retirement plan limits (401(k), IRA, SIMPLE, catch-up)
- 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.