I Just Bought $10,000 in Series I Savings Bonds. Should I Buy Them Again in 2022?

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Welcome to Ask Clark, a column designed to answer your financial questions, by money expert Clark Howard.

Should I Buy More Series I Savings Bonds in 2022?

Bill from Georgia says: “I took Clark’s advice and bought $10,000 in I bonds. I think that’s all I can buy this year. Can I buy another 10,000 in 2022, and is there a good time to make my purchase?”

Clark’s Take on Whether You Should Buy More Series I Savings Bonds in 2022

Clark says: “Buy another $10,000 in January, and you’ll lock in that really great interest rate for six months.”

Because of the returns, Series I savings bonds are a great savings vehicle right now, but many people have a hard time understanding them, Clark says.

“The problem is Series I savings bonds are a very simple-to-buy product but the calculation of interest makes people’s eyes glaze over and they find it very confusing,” he says.

Series I Savings Bonds Explained

“Effectively, I bonds right now are earning at an annual interest rate of over 7%,” he says. Here is the rundown on Series I savings bonds as of December 2021:

  • The current interest rate is 7.12%, and you can buy at that rate until April 2022.
  • You can buy up to $10,000 in I bonds in a calendar year.
  • You have to hold them for five years to avoid penalties for early withdrawal..

Learn more about Series I savings bonds and how to buy them on the U.S. Treasury Department website.

Why Series I Savings Bonds Are a Good Investment Right Now

Clark says this is an ideal time to buy Series I savings bonds.

“The interest rate resets every six months and is based on the rate of inflation, and so right now with inflation having been ugly lately, that’s why what they pay right now is such a great rate,” he says.

“Over time hopefully, we get inflation under control in the United States … but if inflation does remain a factor, I bonds continue to be a great way for you to put away savings each year,” he says.

To hear Clark’s full take on this question, listen to the segment:

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