Carnegie Investment Counsel Blog

Need A Special Holiday Gift This Year, “Clark?” How About A Government-Backed Bond Yielding 7.12%?

Posted by Gary Wagner on Nov 24, 2021 10:30:00 AM

Holiday Gift Government Backed Bond November-4

As the saying goes, if it is too good to be true, it usually is. In this case it is true, thanks to a recent inflation indicator.

A little-known type of U.S Government bonds called I-bonds are currently yielding more than 7%. The I-bond is a type of U.S. savings bond that is indexed to the Consumer Price Index’s trailing 6 month change. When the Treasury reset the rate at the beginning of November it was 7.12% annualized. This rate will be effective until May 2022.


I-Bonds In A Nutshell

  • An I-bond is a U.S. government savings bond with an interest rate tied to inflation.
  • They must be purchased directly from the Treasury at
  • There is a base rate set by the Treasury (currently 0%) with an interest adjustment based on the CPI.
  • Only $10,000 per calendar year can be purchased electronically and another $5,000 can be purchased if you direct a tax refund for the purchase. This limit is per Social Security number.
  • You can purchase as gifts or for a minor.
  • I-bonds earn interest for 30 years. You must hold them for at least a year. 
  • If you cash them before 5 years, you will lose the previous 3 months of interest.
  • I-bonds are free from state and local income taxes.
  • These bonds can help hedge against future inflation.

So, there you have it. A “low-risk” investment with a current yield of 7.12% until May 2022. Helping a minor or young person accumulate a portfolio of I-bonds over his or her lifetime might truly be “the gift that keeps on giving.”


Need a Financial Advisor?

If you are currently looking for help with financial planning, contact us. We are happy to schedule an introductory meeting at your convenience.

Book an Appointment


Topics: Investing, Interest Rates

Gary Wagner

Written by Gary Wagner

Gary Wagner is Principal and Chief Operations Officer. He also works directly with clients to provide investment and strategic wealth advice. Gary sits on Carnegie’s Investment Committee and also manages the firm’s strategic initiatives and operations.

  • There are no suggestions because the search field is empty.

carnegie top 4 things 2021 version-1

Looking to hire a Financial Advisor?

Enclosed in our eBook are four questions we recommend you ask any prospective group you review. Plus, you'll learn: 

  • The difference between fiduciary and suitability standards
  • Learn how some advisors may not be required to work in your best interest
  • Be aware of various types of hidden costs
  • The importance of third party custodians
  • The difference between fee-based and fee-only

Download Now, It's Free

Recent Posts

Subscribe here for monthly blog updates!