NewsNational

Actions

Series I bonds could offer better return on investment

On-The-Money-NerdWallet-Big-Retirement-Expenses
Posted
and last updated

Interest rates on savings accounts are rising following rate increases from the Federal Reserve.

Despite that slight uptick, savings accounts generally do not offer the best return on investment.

A series I bond may be a better option for those who may not need to access their savings immediately.

The bonds will pay 9.62% percent through October. A new rate will be set in November.

The higher rate has made the bonds popular recently, with more than $17 billion sold from November to May. In all of 2020, $365 million were sold.

Financial planners remind potential investors that their money will be locked up for a minimum of one year. People can deposit anywhere from $25 to $10,000.

The bond is backed by the U.S. government, so it's generally risk-free.

People can obtain the bond by going to treasurydirect.gov.