Series I & Series EE Bond Purchase Limit Increased to $10,000 Each

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Series EE BondsThe Treasury Department announced that, effective January 4th, 2012, you will be allowed to purchase $10,000 each of Series I and Series EE bonds per year per person. Previously, it was believed that we’d only be allowed to purchase $5,000 of each series because the annual limit was $5,000 for electronic bonds and $5,000 for paper bonds, with paper bonds, for the most part, being phased out at the end of 2011. You will still be allowed to purchase up to $5,000 in paper Series I bonds with your tax refund, using for Form 8888.

As of this writing, the Series I bond are yielding 3.06% APY through April 2012 (fixed rate component of 0.0% and inflation component of 1.53%) while a Series EE bond will yield 0.60% (but remember, they are guaranteed to double after twenty years, even if the fixed rate won’t get you there, but that adjustment doesn’t happen until you hit twenty years).

In our current interest rate environment, with online savings accounts yielding so little, I’m a fan of Series I bonds.

(Photo: karen_d)

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One Response to “Series I & Series EE Bond Purchase Limit Increased to $10,000 Each”

  1. govenar says:

    Technically I believe the limit is now $15,000, if you include the $5,000 from the tax refund (but that seems a little risky to me, so I’m probably not going to mess with it).

    • David M says:

      I do not think it is risky – it makes sense that the $5,000 from the tax refund would be on top of the $10,000.

      BTW what do you think they would do if you went over the limit? My guess is nothing.

      In 2004 or so – I went over the limit by $500 – I purchased $60,500 in I-bonds when the limit was $60,000 – the treasury has not done anything about it.

      2004 was the “Good old Days of I-bonds” I have guarantees of between 2 and 3.4% plus the inflation. Also I earned a lot of frequent flier points as you used to be able to charge your savings bond purchases – and most of the time United was doubling the miles. Used the mile to fly First Class to Asia.

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