Budgeting & Saving / Bond Series I questions
Jun 19, 2022
Bond Series I questions
The Treasury website is old looking and hard to follow! Does anyone know if the interest is reinvested or does it just cash out for withdrawal? Thanks a lot.
Replies (3)
Jun 19, 2022
@Ichiro329, You can find more information here. Interest is earned on the bond every month and compounded semiannually: twice a year, the interest the bond earned in the previous six months is added to the bond's principal value; then, interest for the next six months is calculated using this adjusted principal. Hope that helps.
Jun 19, 2022
@Theresa716, Got this! How did I miss this on the website. Thanks for your help.
Jun 19, 2022
@Ichiro329, semiannual compounding. It's a great option right now in my opinion. Beats any high yield savings account or TIPS if you don't need the money in the next year. GL!