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I Bonds

Last Updated: November 15, 2006 Related resource areas: Personal Finance


I bonds are sold at face value and grow with inflation-indexed earnings for up to 30 years. You can buy Series I bonds in $50 to $10,000 denominations up to $30,000 in any calendar year. Investors cashing I bonds before a five-year period passes are subject to a three-month earnings penalty. Minimum holding time to earn interest on the bond(s) is one year. Interest earnings may be excluded from federal income tax when used to finance education (see education tax exclusions).


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