Here is a summary on I bonds:

  • You can buy 2 types of US savings bonds: EE Bonds and I Bonds.
  • Maximum purchase each calender year per SSN is $10,000 electronic I bonds via + $5,000 in paper I bonds with your tax refund (per return, single or joint).
  • Paper can be converted to I bonds.
  • Cannot have joint account.
  • Can cash in after 1 year, but if you cash before 5 years, you lose 3 months of interest.
  • Interest rate = Fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate).
  • Current (November 2022 through April 2023) fixed rate = 0.40%, will not change while you hold the bond.
  • Current Semiannual (1/2 year) inflation rate = 3.24%, it changes every May and November depending on the inflation at the time.
  • Current interest rate = 6.89%.
  • Semiannually compounding (adding value 2 times a year).
  • Anyone (including F-1 students and H1B professional workers) who can open an account on and have an US bank account can buy I Bonds.
  • Interest is tax free on state return always.
  • Interest is tax free on federal return only if it is used for higher education AND your income is low enough ($100,800 if single, $158,650 if joint for 2022 per form 8815).
  • Federal income taxes can be deferred for as long as the bonds are held or until it reaches maturity in 30 years.

I cannot give investment advice, for that, please consult your neighbors.