- I Bonds are based on a straightforward idea. They're sold at
face value and grow with inflation-indexed earnings for up to 30 years.
- I Bonds are affordable. You can invest as little as $50 or as
much as $30,000 per year.
- I Bonds are safe. They're U.S. Treasury securities backed by
the full faith and credit of the United States Government.
- I Bonds have tax advantages. You can defer Federal taxes on
earnings for up to 30 years, and I Bonds are exempt from state and local
income taxes. The best part is you don't need to do anything to get these
benefits--they're built right into I Bonds.
- I Bonds will usually increase in value every month, and interest
is compounded semiannually.
- I Bonds are liquid. They can be turned into cash any time after
six months.
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