How to Buy More than $10,000 in I Bonds Annually (2024)

In a world where the stock market is unpredictable and interest rates are rising, many investors are looking for someplace to put their money that is as close to risk-free as possible — even if it means forgoing the chance for a bigger reward. One increasingly popular pick are I Bonds, savings bondsissued by the U.S. government. These bonds are virtually risk free and have a robust fixed interest rate. There is generally a $10,000 limit per year for purchasing I Bonds, but there are a few ways to get around this limit.

For more help working I bonds into your financial strategy, consider working with a financial advisor.

Understanding I Bonds

I Bonds are issued by the federal government and carry a zero-coupon interest rate — plus, they are adjusted each year for inflation. The variable return will sit at 5.27% through April 2024. Unlike other U.S. securities, these bonds are sold at face value. This means if you purchase a $100 bond, the price will be $100. The bond duration runs from one year to 30 years.

Interest is paid every month and compounds every six months. The following deadlines apply to I Bonds:

  • Within one year of purchase: You cannot cash the bond.
  • Within one year and five years of purchase: You can cash the bond but forfeit the previous three months’ interest payments. This is known as “early redemption.”
  • After five years of purchase: You can cash the bond with no penalty.
  • After 30 years of purchase: The bond ceases to pay interest.

You don’t have to cash the bond after 30 years, but it will start to lose value against inflation. Unfortunately, there is a limit to how much you can buy each year, for yourself, in these bonds. That doesn’t mean you can’t get around that limit, though, depending on your situation.

How to Get Around the $10,000 I Bond Limit

These bonds are popular, but there is a limit of $10,000 per year that an individual can purchase. That said, there are some loopholes you can exploit if you want to put even more money into these bonds to nab that healthy 5.27% yield. Here are the most popular methods or loopholes:

1. Tax Refunds

If you are expecting to get a tax refund, you can purchase an additional $5,000 in I Bonds with the money the government owes you. There is one catch, though as they have to be paper I Bonds, not the more popular digital I Bonds. While this adds a bit of complexity, you can eventually convert these paper bonds to digital ones down the line.

2. Buying for Multiple Members of the Family

The limit is per person, so if you’re married then each spouse is allowed to purchase $10,000 in I bonds (plus the paper bonds if they have a tax return). You can also purchase up to $10,000 in I Bonds for your children, but they must be used for the child, possibly as a college savings tool.

3. Businesses and Trusts

Entities like businesses and trusts can also purchase up to $10,000 in I Bonds. This means that if you own a business and you have a living trust, you can purchase up to $30,000 in additional I Bonds each year.

While any of these can be a good way to increase the amount of I Bonds you’re able to buy, using multiple options together can help you maximize the number of bonds you’re able to purchase and earn the current high yield on.

Bottom Line

I Bonds are a virtually risk-free investment, which makes them very popular in times of market uncertainty such as right now and as inflation devalues your cash. That said, there is a $10,000 limit each year for purchasing them. There are several ways around this limit, though, including using your tax refund, having your spouse purchase bonds as well and using a separate legal entity like a trust. Finding the right solution(s) for you can increase the amount of “free money” you’re able to receive on these nearly risk-free investments.

Investing Tips

  • For help using I Bonds as part of your strategy, consider working with a financial advisor. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • Building a dividend stock portfolio is another way to use investments to create income.

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How to Buy More than $10,000 in I Bonds Annually (2024)


How to buy more than $10,000 I bonds per year? ›

How to Get Around the $10,000 I Bond Limit
  1. Tax Refunds. If you are expecting to get a tax refund, you can purchase an additional $5,000 in I Bonds with the money the government owes you. ...
  2. Buying for Multiple Members of the Family. ...
  3. Businesses and Trusts.
Dec 19, 2023

Can you buy I bonds multiple times a year? ›

You also can buy an I bond in paper form, through the Tax Time Purchase Program. Use IRS Form 8888, “Allocation of Refund (Including Savings Bonds Purchases).” Purchase prices start at $50 and you can buy in $50 multiples up to $5,000 per person, per calendar year.

Can I buy $100000 in Treasury bonds? ›

There is no limit on the total amount that any person or entity can own in savings bonds.

What will the next I bond rate be in 2024? ›

Series I bonds will pay 4.28% annual interest from May 1 through October 2024, the U.S. Department of the Treasury announced Tuesday. Linked to inflation, the latest I bond rate is down from the 5.27% annual rate offered since November and slightly lower than the 4.3% from May 2023.

How often can I buy a $10,000 i bond? ›

In a calendar year, one Social Security Number or one Employer Identification Number may buy: up to $10,000 in electronic I bonds, and. up to $5,000 in paper I bonds (with your tax refund)

How can I buy more than $10,000 in I bonds through this loophole? ›

There are a number of ways around this limit, though, including using your tax refund, having your spouse purchase bonds as well and using a separate legal entity like a trust. For help using I Bonds as part of your strategy, consider working with a financial advisor.

Can married couples buy $20,000 in I bonds? ›

Yes, since bond purchase limits are based on a person's Social Security number, a married couple could buy up to $30,000 in I bonds annually. Each spouse could buy $10,000 in electronic I bonds and $5,000 in paper I bonds, assuming their federal tax refund is large enough.

Is there a downside to I bond? ›

The cons of investing in I-bonds

There's actually a limit on how much you can invest in I-bonds per year. The annual maximum in purchases is $10,000 worth of electronic I-bonds, although in some cases, you may be able to purchase an additional $5,000 worth of paper I-bonds using your tax refund.

Do you pay taxes on I bonds? ›

How much tax do I owe on my I bonds? Interest on I bonds is exempt from state and local taxes but taxed at the federal level at ordinary income-tax rates.

What is the safest investment with the highest return? ›

Here are the best low-risk investments in April 2024:
  • High-yield savings accounts.
  • Money market funds.
  • Short-term certificates of deposit.
  • Series I savings bonds.
  • Treasury bills, notes, bonds and TIPS.
  • Corporate bonds.
  • Dividend-paying stocks.
  • Preferred stocks.
Apr 1, 2024

How much is a $100 savings bond worth after 30 years? ›

How to get the most value from your savings bonds
Face ValuePurchase Amount30-Year Value (Purchased May 1990)
$50 Bond$100$207.36
$100 Bond$200$414.72
$500 Bond$400$1,036.80
$1,000 Bond$800$2,073.60

How often can I buy an I bond? ›

While you're only allowed to buy up to $10,000 worth of I bonds in a single calendar year, once a given year is over, that limit resets for you. So if you bought $10,000 worth of I bonds recently, you can purchase additional I bonds in January 2023 since it's a new calendar year.

What will interest rates be in 2024 2025? ›

Mortgage rates are currently expected to continue trending down through 2024 and into 2025. The Mortgage Bankers Association thinks that 30-year mortgage rates could fall to 5.9% in 2025.

Are interest rates going up in 2024? ›

In fact, they'll likely rise this year as mortgage rates drop. Fannie Mae researchers expect prices to increase 4.8% in 2024, while the Mortgage Bankers Association expects a 4.1% increase in 2024. Lower mortgage rates will bring more buyers onto the market, putting upward pressure on prices.

Can you buy a $5,000 I bond? ›

Buying paper Series I savings bonds

You can buy any amount up to $5,000 in $50 increments. We may issue multiple bonds to fill your order. The bonds may be of different denominations.

Can I buy more than $10,000 in I bonds as gifts? ›

You'll need the recipient's full name and Social Security or tax ID number. The minimum purchase amount for an electronic Series I bond is $25. Whether you purchase an I bond for yourself or another person, the cap per person, per year is $10,000 in digitally purchased bonds. But this cap is per recipient.

What is the maximum purchase per year for I bond rates? ›

How much can I buy? Individual purchase limits for I bonds are $15,000 per calendar year — $10,000 worth of electronic I bonds and $5,000 worth of paper I bonds. Paper I bonds can only be purchased using your federal tax refund and are not bought electronically.

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