I-Bonds are paying 9.62% interest. You read that correctly. I-Bonds are U.S. savings bonds issued by the United States Treasury. The interest rate is adjusted twice per year, in May and November. The current rate for I-Bonds is 9.62% on an annual basis for the first six months they’re held.
Although the most you can purchase is $10,000 per person per year, if you have an entity, the entity may also buy an I-Bond. Additionally, parents can gift the bonds to children aged 18 and under.
You have to hold the bond for a year, and if you redeem the bond within the first five years, then you lose three months of interest. All earned income is exempt from state and local tax, but you will pay federal tax on the interest, unless you use the bonds to pay for qualified education expenses, which is another topic!
You can only purchase the bonds from Treasury Direct.