Get an anti-inflation bond that pays 9.62 percent while there’s still time

But you only have a short window, until the end of October, to take advantage of the price. Savers who want to lock in that rate for an additional six months have until Friday, October. 28 to make their bond purchase to ensure they will be issued in October. Deadline 31.

Here’s why this downtime is so important.

There are two components to Bond I yield: a fixed rate and an inflation-adjusted rate. The fixed rate of return and the semi-annual inflation rate are announced by the Treasury at the beginning of May and November each year.

While the flat rate remains the same for the duration of the 30-year bond (which is currently zero), the inflation rate is adjusted every six months based on changes in the CPI for all urban consumers.

Prices soared in September and tough interest rates were confirmed

Although inflation remains at historically high levels, the latest numbers show a slight slowdown, according to the Newly released data From the Bureau of Labor Statistics.

Some indicators declined in September, including those for used cars, trucks and clothing. The rise in consumer prices was offset by a 4.9 percent drop in the gasoline index. Therefore, the inflation index portion of the first bond is likely to see a rate cut in November.

However, investors who buy I bonds before November 11th. 1 will still get 9.62 percent for the first six months they own the bond. But you should get a confirmation email regarding your I warranty purchase by 11:59:59 PM ET in October. 28 to check rate lock.

Here are some things you need to know about buying I bonds.

– To purchase an electronic bond, you must first create an account on TreasuryDirect.gov.

Individuals can purchase up to $10,000 of bonds in a calendar year. For married couples, each pair can purchase up to a maximum of $10,000.

Don’t buy I bonds with money you think you will need soon. This is not the place to put the money you need to access in case of emergency expenses such as a major car repair. This money should remain in your savings account. You must hold an I bond for 12 months from the date of issue before it can be redeemed.

If you cash the bond in less than five years, you lose the interest of the last three months. Once your warranty reaches five years, there is no interest penalty if you cash it out.

These major Treasuries pay a high price. Here is how to buy it.

– If you have not created a TreasuryDirect account before, take a guided tour of the website and be sure to read the directions carefully to minimize any problems. People who are having problems will find it difficult to get to a live person for help. Wait times for assistance at 844-284-2676 can be long. (Calls are accepted 8 a.m. to 5 p.m. ET, Monday through Friday.)

– Due to the issues some people have had when creating a TreasuryDirect account, don’t be put off. Get it now. Don’t wait until October. 28. Savers looking for information or help with an I bond issue have flooded TreasuryDirect, causing much longer than usual waiting times.

– If you are having trouble creating an account online, you will need to sign papers from your bank. If that happens, you are not likely to do October work. Deadline 28.

I initially tried to buy an I bond in June. TreasuryDirect said it had difficulty verifying the information it provided. I was not told why there was a problem.

What do you know about inflation index bonds that pay 9.62 percent

An automated email from TreasuryDirect said: “We have not been provided with any information regarding issues related to account verification.”

Due to issues verifying my information, I had to complete an account authorization form and mail it to the Treasury location in Minneapolis. “The average approval takes 10 to 15 days but may take longer depending on the volume of forms we receive,” the first email from TreasuryDirect stated.

A few weeks after mailing the form out, I received an email acknowledging that the Treasury had received my form and that the approval process could take up to 13 weeks to review and process. It was good that they were able to live up to my expectations. Two weeks later, I received another email from TreasuryDirect stating that the suspension on my account had been removed, and I could make my bond purchase.

If you are having trouble setting up a TreasuryDirect account on the first try, you are unlikely to be able to meet in October. Deadline 28 to benefit from 9.62 percent. There is not enough time to navigate the verification process.

But with inflation still rising, bonds will continue to pay out significantly more than a savings account or certificate of deposit even after the rate reset in November. So don’t give up if you run into an obstacle in the process.