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What is a Series I Savings Bond?

A Series I Savings Bond is a type of savings bond that is issued by the United States Department of the Treasury. Series I bonds are a low-risk investment that earns interest at a rate that is tied to the inflation rate.
Series I bonds are a great way to save for long-term goals, such as retirement. They are also a good option for investors who want to hedge against inflation.
If you are looking for a safe and guaranteed investment, then a Series I Savings Bond may be right for you. Keep reading to learn more about how Series I bonds work and how they can benefit you.

How to purchase Series I Savings Bond

A Series I Savings Bond is a low-risk investment that is guaranteed by the U.S. government. The bonds are sold at face value, so you will pay $50 for a $50 bond, for example. You can purchase Series I Savings Bonds through the TreasuryDirect website. You will need to set up an account and then you can buy bonds in increments of $50 up to $10,000 per calendar year.

What are the tax implications of cashing in my Series I Savings Bond?

When you cash in your Series I Savings Bond, you will be subject to federal income tax on the interest that has accrued. This tax is generally due in the year that you cash in the bond. However, you may be able to postpone the tax if you reinvest the proceeds in another Series I Savings Bond.
You will also be subject to state and local taxes on the interest, depending on the laws in your state.
Before you cash in your Series I Savings Bond, make sure you understand the tax implications. This will help you make the best decision for your financial situation.

When can I cash in my Series I Savings Bond?

When you buy a Series I Savings Bond, you are investing in a low-risk, long-term savings product issued by the U.S. Treasury. I Bonds are unique in that they offer protection against inflation, as well as a guaranteed return on your investment.
I Bonds have a maturity of 30 years, but you can cash them in at any time after 12 months. If you cash them in before 5 years, you will forfeit the last 3 months of interest.
So, when should you cash in your I Bond? Here are a few things to consider:

-Your financial needs: If you need the money for an emergency, it’s better to cash in the bond than to let it mature.
-The rate of inflation: If inflation is high, you may want to hold onto the bond until it matures so you can get the full return on your investment.
-The interest rate: If interest rates are high, you may want to cash in your bond and reinvest the money in a higher-yielding investment.

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