MEMO: I BONDS

Quick primer about I Bonds

1) Introduced in 1998
2) Purchased from the Treasurydirect.gov website.
3) Bonds are designed to protect against inflation.
4) Interest rates are adjusted twice a year (May and November)
5) Current rate is 9.62%
6) How much can I purchase?
A) 10,000 per person limit per annum each year
B) Individuals can purchase an additional $5,000.00 in I bonds through their tax
refunds.
7) I Bond is a 30-year bond. If you sell prior to 5 years you will lose three months of
interest. If you hold the bond for five years you will no longer lose any interest.
8) The interest is taxable for federal income tax purposes and not taxable for NYS and
NYC income tax purposes.