This Investment Offers a Nearly 10% Return on Your Savings — But You Only Have 8 Days Left to Claim It

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You should definitely consider this if you have cash to spare.

Important points

  • There is a low-risk investment that is linked to the rate of inflation.
  • With inflation currently high, it offers significant returns.
  • But you have to act by October 28 if you want to secure the high interest rate.

Inflation has cost people money all year round, and on top of that it has also made borrowing money much more expensive than before. But it has also opened new doors for investors looking to grow their wealth.

There’s one investment in particular that’s looking really good right now, but it’s a limited-time offer. If you want to secure this high rate, you must act within the next eight days.

These interest rates are at record highs

Stock market volatility and talk of a possible recession can make investing feel like a risky proposition, but when it comes to I-Bonds, there’s virtually no risk involved. These bonds are backed by the federal government so they cannot lose their redemption value. They are also tied to the rate of inflation, so when inflation is high like it is now, they can generate high returns.

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Currently, I-Bonds offer an all-time high of 9.62%. However, there is a catch. Bond interest rates change every May and November. If you want to lock in the current rate, you need to buy your I-Bonds by October 28th. This gives you a return of 9.62% over six months. After that, rates are expected to drop to around 6.48% over the next six months, but that’s still pretty high.

Is it a wise investment for you?

I-Bonds have attracted a lot of attention lately as they are a good choice for short to medium term investments. Stocks are a better long-term choice for retirement planning because you’ll likely make more from them over the course of a few decades. But I-Bonds currently offer low risk and high yields.

However, there are a few things that could make them a bad choice for you. First, when you invest in an I-Bond, that money is locked up for a year. You can’t get it back before then. And if you cash out before you’ve held the bond for five years, you’ll pay a penalty for lost interest. It’s not the same as losing money, but it does mean you end up with a lower return than you might have expected.

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So investing in an I-Bond only makes sense if you have money that you’re happy to leave alone for a few years. If not, you might be better off with a high-yield savings account that allows you to earn interest without restricting your access to your money.

how to start

You can buy up to $10,000 worth of I-Bonds through TreasuryDirect. This is the maximum you are allowed this year. So if you’ve already bought that much, you can’t buy more now.

Once you open a TreasuryDirect account, you can choose the size of your bond as long as it is at least $25. You must purchase the bond and receive a confirmation email by October 28 to claim the 9.62% interest rate for your first six months.

Your I-Bond will continue to earn interest for up to 30 years unless you sell it first. If you do so, you will pay federal income tax on your earnings, but you will not owe any state or local taxes on them. And those who use the money to pay for education expenses may even be able to avoid federal taxes thanks to an income tax exemption.

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Investing in I-Bonds isn’t a get-rich-quick scheme, and it’s not always a foolproof investment. But right now is a great time to take advantage of their unusually high interest rates if you have some extra cash. If you decide to invest, do your best to keep your money for at least five years so you can avoid penalties. After that, you can reassess whether it’s still a smart investment for you.

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