We have recommended over the years, especially in 2021 to many clients to purchase Series I bonds.  At that time, the interest rates were hard to beat, but they have continually been dropping as they reset ever 6 months.  The Treasury Department just announced that as of May 1^st, the interest rate will drop to 4.28% and will reset again come November 1^st of 2024.  

Now CDs and regular Treasury bonds that can be purchased with us or CDs at your local bank are paying more.  As of now, a one year, regular Treasury is paying 5.31% which is now over 1% higher than Series I bonds.

Our recommendation for clients who have held these for over 1 year (required period to hold) would be to look to cash out.  We can discuss what is the best use of those funds either for expenses, paying down debts or reinvesting.  Please note there is a 3 month penalty of interest for Series I bonds held less than 5 years.

Please call your advisor to discuss what maybe best for your personal situation if you own Series I bonds.

https://www.cnbc.com/2024/04/30/treasury-series-i-bond-rate-is-4point28percent-through-october-2024.html.