6.89% Interest on Your Savings? Yes, with New U.S. Treasury Series I Savings Bonds

Cam White | November 1, 2022

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If you are looking for a conservative way to earn 6.89% interest on your money over the next 6 months and you have the ability to park funds for one year or more, then U.S Treasury Series I Savings Bonds may be the right solution for you. This is the third highest rate since I bonds were introduced in 1998, according to CNBC.

How does this compare with traditional savings vehicles? Let’s put things into perspective. According to Bankrate.com here are the current interest rates for other traditional savings accounts.

  • Capital One Savings Account – 3.00% APY
  • Lending Club Savings Account – 3.12% APY
  • Capital One 1 Year CD – 4.00% APY
  • Capital One 2 Year CD – 4.10% APY

The Upside

In comparison, U.S. Treasury Series I Savings Bonds offer a far better yield than traditional savings accounts, and your investment is backed by the U.S. Government.

The Downside

  • The 6.89% rate is guaranteed for the next 6 months, until April 30, 2023. After that rates could go up or down as the Fed continues its battle against inflation.
  • You will need to use money you are willing to tie up for at least one year.
  • The maximum investment is $10,000 per Social Security number.

How to Buy the New U.S. Treasury Series I Savings Bonds

Go to https://treasurydirect.gov/savings-bonds/i-bonds/ to get all your questions answered and to set up an account and purchase series I savings bonds.

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