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The New I Bond Rate Is Out. And It's Great News.

The new rate for Series I Savings Bonds (I Bonds) has been announced, and it's a significant increase, now offering a 6.89% annualized rate for the next six months, effective from November 1, 2022, to April 30, 2023. This rate comprises a fixed rate of 0.40% and a semiannual inflation rate of 3.24%, reflecting the recent high inflation environment. I Bonds are attractive for their inflation protection, as they adjust their interest rates every six months based on inflation, and they are backed by the U.S. government, making them a low-risk investment option. However, there are purchase limits and potential tax implications to consider, such as federal taxes on the interest earned, though they are exempt from state and local taxes. This rate hike makes I Bonds an appealing choice for investors looking to safeguard their savings against inflation.

Read the Full Investopedia Article at:
[ https://www.investopedia.com/the-new-i-bond-rate-is-out-and-it-is-great-news-11726119 ]