U.S. Treasury Series I Savings Bonds Yield 6.89% Interest through April 30, Effective Immediately

Cam White | November 3, 2022

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Market Recap

U.S. equity markets finished mixed during a choppy session on Thursday. The Dow dove sharply on the Opening Bell, but managed to start clawing its way back, breaking slightly into positive territory before selling back off going into the closing bell. The S& P500 was off slightly, along with the Russell 2000. The tech-heavy Nasdaq fell the most, dropping over 1% on the day.

Layoffs

Amazon, Uber, Lyft, and Stripe announced significant layoffs, citing increased operating costs and fears of a possible recession looming in the near future. Amazon is placing a freeze on corporate jobs. Stripe layed off 14% of its workforce and Lyft followed suit, laying off 13% of its workforce.

Crude Oil prices dropped 2% on rate hikes and weakened demand in China. In the Crypto World, Bitcoin held steady at 20,246 as well as Ethereum at 15,546. The US Dollar Index moved up over 1% to 112.740.

U.S. Treasury Series I Savings Bonds Yield 6.89% Interest through April 30, Effective Immediately

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.


Thursday Closing Bell, November 3 (4 PM ET)

DJIA 32,013.18 -134.58 (-0.42%)
S&P 500 3,719.68 -40.01  (-1.06%)
NASDAQ 10,342.94  -181.86  (-1.73%)
Russell 2000 1785.37  -4.01  (-0.23%)
Crude Oil 88.12 -1.94  (-2.19%)
US Dollar Index 112.825  +1.602  (+1.44%)

 

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