New Bill Would Raise I Bond Purchase Cap

What You Need to Know

The bill would raise the annual electronic purchase limit to $30,000 from $10,000 when inflation tops 3.5%.

A bipartisan Senate bill introduced this week would double the cap on annual Series I Savings Bond, or I bond, purchases, when inflation exceeds 3.5%, easing one of the limits on a government security designed to help protect investors and savers against rising consumer prices.

As inflation soared this year, market experts have suggested investors explore I bonds, which, if purchased through Oct. 31, carry a 9.6% interest rate for the first six months. The bonds generate interest by combining fixed and inflation rates; the interest rates change every six months.

Savers currently can purchase up to $15,000 in I bonds a year — a maximum $10,000 in electronic versions through the TreasuryDirect website and $5,000 in paper bonds through federal income tax returns.

Legislation introduced Tuesday by Sens. Deb Fischer, R-Neb., and Mark Warner, D-Va., the Savings Security Act of 2022, would raise the limit to $30,000 in purchases annually when the average six-month annual Consumer Price Index for all Urban Consumers exceeds 3.5%. (The $5,000 annual limit on paper I bond purchases wouldn’t change.)