Want 9.6% Interest on Cash Savings?
Your Money Coach recommends US Government I-Bonds.?The new rate starting 1 May 2022 reportedly will be 9.6% for the following six months??Then the rate will change depending on the inflation rate (I-Bond means Inflation-protected Bond).?The current rate is 7.12% so wait until May 1.?You must order online through an account at TreasuryDirect.gov.?The I-Bond account is linked to your bank account.?Each SS# over 18 can invest any amount from $25 to $10,000 per year, in increments if desired.?Interest is not taxed until the I-Bond is redeemed.?Bonds earn interest for 30 years.?There is a “fixed rate” attached to each bond purchase.?The current rate is 0.0%, but in 2002 the fixed rate, for example, was 2.0% meaning that the money I invested in I-Bonds in 2002 will earn 11.6% from May 1 – October 31, 2022. ??You cannot withdraw your purchase for one year, and there is a penalty of 3 months interest if redeemed under five years.?I-Bonds are an investment and should be part of your portfolio.