U.S. GOVERNMENT SAVINGS BONDS
Below please find information regarding Series I (inflation indexed) U.S. Government bonds. Keep in mind that we do not sell US bonds, but the information below provides information about where you can acquire them. Goldline provides this information free of charge because we believe U.S. bonds, like precious metals, should be part of a diversified portfolio.
For more information or to request copies of this information, please call 1-877-376-2646 and speak with a Goldline Account Executive, or click here.
Where to Buy I Bonds
From Banks and Other Financial Institutions
You can buy I Bonds from most banks, credit unions, or savings institutions. These institutions accept funds and purchase orders and forward the order to a Federal Reserve Bank where the bonds are issued and mailed according to your instructions.
Through TreasuryDirect
I-Bonds may be purchased through TreasuryDirect. After opening a TreasuryDirect account online, you can buy, manage, and redeem electronic EE and I Bonds over the Internet.
From a Bond-A-Month Program
Many financial institutions offer I Bonds through "Bond-A-Month" savings plans. This plan allows you to automatically buy bonds on a regular schedule (not necessarily monthly). Contact your financial institution for more information.
Through a Payroll Savings Plan
I Bonds can be purchased through the Payroll Savings Plan offered by many employers. Check with your employer to see if the plan is offered where you work.
I Bond Interest Rates
Current rate through April 2010: 3.36% I Bond interest rates have two parts:- A fixed rate that lasts for 30 years
- An inflation rate that changes every six months
How the Treasury Sets Composite Rates
The U.S. Treasury combines fixed rates and semiannual inflation rates to determine composite earnings rates. An I bond's composite earnings rate changes every six months after its issue date. Here's how they set the composite rate for I bonds issued November 2009 - April 2010:Features
- I Bonds are based on a straightforward idea. They're sold at face value and grow with inflation-indexed earnings for up to 30 years.
- I Bonds are affordable. You can invest as little as $50 or as much as $30,000 per year in paper I Bonds. In addition, you can invest as little as $25 or as much as $30,000 per year in electronic I Bonds sold through TreasuryDirect.
- I Bonds are safe. They're U.S. Treasury securities backed by the full faith and credit of the United States Government.
- I Bonds have tax advantages. You can defer Federal taxes on earnings for up to 30 years, and I Bonds are exempt from state and local income taxes. The best part is you don't need to do anything to get these benefits--they're built right into I Bonds.
- I Bonds will usually increase in value every month, and interest is compounded semiannually.
- I Bonds are liquid. You can cash I Bonds anytime after 12 months though early redemption may result in penalties.
Tax Advantages of I Bonds
- Earnings are exempt from both state and local income taxes but may be subject to other forms of state and local taxes.
- Federal taxes can be deferred until redemption, final maturity (30 years after issue date), or other taxable disposition, whichever occurs first. (Tax deferral applies to both components of the earnings rate--fixed rate earnings and semiannual inflation rate earnings.)
- Special tax benefits are available to qualified owners of I Bonds under the Education Savings Bond Program; however, continued tax deferral through an exchange for Series HH bonds isn't available.
