How to Buy I Bonds
An I Bond (also known as an Inflation-Protected Bond) is a type of savings bond issued by the United States government that protects your investment from inflation.
Steps for How to Buy I Bonds
- Step 1: Visit the TreasuryDirect website, where you can purchase I Bonds.
- Step 2: Create a TreasuryDirect account. You will need to provide your full legal name, Social Security number or Tax Identification number, address, and other personal information.
- Step 3: Fund your account by transferring money from a checking or savings account. You can also transfer money directly from your employer’s payroll.
- Step 4: Select the type of I Bonds you want to buy. I Bonds come in two forms: Series EE and Series I.
- Step 5: Specify the amount of purchase. I Bonds can be purchased in denominations of $25, $50, $75, $100, $200, among others, with a maximum of $10,000 per year.
- Step 6: Complete the purchase by entering payment information and confirming transaction.
Tips
- Review the I Bonds before you commit to buying them since the terms and conditions can change.
- I Bonds come with fixed and variable interest rates. The fixed rate stays the same while the variable rate is set twice a year, so make sure to check the interest rate before buying I Bonds.
- I Bonds can be purchased online or through a bank or financial adviser. Doing so could incur additional fees, so make sure you understand the costs associated with buying I Bonds.
- I Bonds can only be held for certain periods of time. You will need to decide when to redeem them and how to reinvest the proceeds.
