Quality Bonding Time
Be sure and get your series I savings bonds before May 1st when the rates drop drastically. Right now, they are paying a fixed 1.2 percent above inflation, which is currently 4.28 percent - one of the highest paying investments you can make. The fixed rate will drop drastically if you purchase May bonds, so be sure and get your bonds in time to have them dated in April.
You can purchase them online at http://www.savingsbonds.gov/ up to a maximum of $5,000. If you want to purchase more, you can purchase up to $5,000 of paper bonds too. These limits are per social security number, so others in your family can purchase them too if you have the funds. Definitely buy them as quickly as you can!
Savings bonds are one of the safest invesments you can make, and if you act quickly, they can be part of your portfolio. The nice thing is you don’t have to have much money to buy them. You can get them for as low as $25.
You are required to hold series I savings bonds for 1 year. If you cash them in before you’ve held them 5 years, you forfeit the last 90 days of interest as your early cash-in penalty fee. Once you’ve held them five years, there is no longer any penalty. You can hold them up to 30 years, so they are a fantastic long-term investment.