CARL WATTS & ASSOCIATES
March 29, 2010
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Washington DC
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tel/fax 202 350-9002 |
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This year you may purchase paper Series I Bonds with your income tax refund without having an account with the Treasury.
US Series I Bonds are a low-risk saving product that can earn interest and protect you from inflation. |
You can buy up to a total of $5,000 of I Bonds at face value Bonds at face value in denominations of $50 or higher depending on the amount you request.
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| The Bonds issued will be registered on your name or in co-ownership form if you are married filing jointly. |
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They can earn interest for 30 years and the interest is added to the bond monthly
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The earnings rate is a combination of fixed rate and inflation rate, both announced each May and November
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I Bonds have a twelve-month minimum holding period (or ownership)
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They can be redeemed after five years without a penalty, but before five years there is a three month interest forfeit
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Interest earnings are exempt from State income tax but subject to Federal income tax unless used to finance education
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Current interest rate is 3.36% through April 30, 2010
Buying
U.S. Savings Bonds With Your Tax Refund
U.S. Savings Bonds With Your Tax Refund