You may remember from last month’s article that you can buy from now through October 31, 2022, Series I bonds from the U.S Treasury that pay 9.62 percent tax-deferred interest.

If you buy now, you earn that 9.62 percent for six months, guaranteed. At the end of six months, the Treasury Department

adds the interest you earned to your principal, and

pays interest on your new principal balance at the new rate it will determine this year, on November 1.

Example. You buy $10,000 of I bonds on September 24. You earn 9.62 percent for six months for a total of $481 ($10,000 x 9.62 percent ÷ 2). On March 24, your principal balance is $10,481 ($10,000 + 481).

Let’s say Treasury sets the November 1 interest rate at 9 percent. During the six months from March 24 to September 24, 2023, you earn interest at 9 percent on $10,481. ... Log in to view full article.