Demand for US Series I savings bonds this week has been so strong that it temporarily disrupted the Treasury’s website where the bonds are bought. This could mean that investors’ bids may not be processed in time to lock in the 9.62% interest rate by the October 28 deadline.
TreasuryDirect.gov was warning users about this Thursday, calling the books “unprecedented”. “We cannot guarantee that your bond purchase will be completed before the deadline if your account or purchase requires customer support for issues such as identity verification.”
The Treasury said on Thursday it had fixed technical issues and had doubled the site’s connectivity to allow more customers to successfully set up accounts and buy bonds. But, A Treasury official said, there may be some problems in the middle depending on the traffic in the next two days.
To give an idea of the amount of traffic, the official said: “In the last days of the window, TreasuryDirect.gov has gone from an average of one time visitors of several thousand to one of the most successful. visited the websites of the federal government .”
The record high level on I Bond, which is determined by a process based on changes in the Consumer Price Index, it is updated every six months. It is expected to do so on November 1.
It’s no surprise that interest rates on inflation-protected securities rose last week, because it’s almost impossible to find any money they’ll give you. a 9.62% returns today, not to mention “safe”.
There are restrictions on what you can invest in an I Bond, however. Individuals may purchase up to $10,000 in I Bonds electronically during the calendar year. (For married couples, either husband or wife can buy their own I save up to $20,000 a year.) Additionally, you can purchase up to a $5,000 paper I Bond if you use your tax refund to purchase it.
Catching up with I Bonds, which you can hold for up to 30 years, it’s this: You can’t get rid of it in the first year. And to get full interest, you must have the loan for at least five years. Otherwise, you will pay interest for three months.
So when it’s not liquid money at the same time, it’s a good place to park money you won’t need for the next 12 months, if only to maintain its purchasing power in today’s high-stakes environment.