The 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).
(Photo: karen_d )