This investment gives you a return of almost 10% on your savings, but you only have 8 more days to claim it.

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If you have spare cash lying around, you should definitely consider this.

Key Point

• There are low-risk investments that track inflation.
• Inflation is high at the moment, so it offers substantial returns.
• But if you want to keep interest rates high, you have until October 28th to act.

Inflation has cost people money all year long. On top of that, the cost of borrowing money has also become much higher than before.

There’s one investment in particular that looks really good right now, and it’s a limited-time offer. If you want to secure this high rate, you must act within the next 8 days.

These interest rates are the highest ever

Talk of stock market volatility and the possibility of a recession can make investing feel like a risky proposition, but when you’re dealing with I-bonds, there’s virtually no risk. Because these bonds are federally backed, they never lose their redemption value. In addition, since it is linked to the inflation rate, it can generate high returns when the inflation rate is high like now.

Currently, the I-bond offers a historically high interest rate of 9.62%. However, there are pitfalls. IBond interest rates fluctuate in May and November each year. If you want to lock in the current interest rate, you have until October 28th to buy I-bonds. This gives a return of 9.62% for 6 months. Interest rates are then projected to drop to about 6.48% over the next six months, but remain fairly high.

Is it a smart investment for you?

Bonds have received a lot of attention recently as a great short- or medium-term investment option. suitable as an alternative. However, I bonds currently offer high returns at low risk.

That said, there are some things that can make them a bad choice for you. You cannot get it back before then. Also, if he cashes out the bond before he holds it for five years, he will pay a penalty in interest loss. This is not the same as losing money, but it means you get less return than expected.

So investing in I-Bond only makes sense if you have money you can safely leave alone for a few years. If not, you may be better off with a high-yield savings account that allows you to earn interest without restricting access to your funds.

how to get started

You can purchase up to $10,000 of I-Bonds through TreasuryDirect. This is the maximum amount for this year, so if you have already purchased that amount, you will not be able to purchase more now.

When you open a TreasuryDirect account, you can choose your bond size as long as it’s a minimum of $25. To claim the 9.62% rate for the first 6 months, you must purchase a bond and receive a confirmation email by October 28th.

I-Bonds continue to earn interest for up to 30 years unless sold first. If you do, you will pay federal income tax on your income, but you will not be obligated to pay state or local taxes. And those who spend that money on education may even be able to avoid federal taxes thanks to the income tax exemption for this.

Investing in I-bonds is not a get-rich-quick scheme and is not always a surefire investment. But if you have some extra cash, now is a great time to take advantage of the very high interest rates. If you do decide to invest, do your best to keep the money for at least five years so you can avoid fines. You can then reassess whether it is still a smart investment.