You can purchase $15k per person per calendar year. You are limited to the $10k limit on the treasury direct site plus $5k using your tax refund (by completing form 8888… you just need to overpay your estimated taxes so you have the refund coming).
I see no downside to these bonds. The principle and interest rate is guaranteed. If the interest rate attached to these bonds is lowered and becomes unattractive in the future … you can sell the bonds at any time after one year (paying a small penalty if held less than 5 years).
There is nothing not to like if you are looking for a very secure US government backed investment …. Except for the fact that you may only purchase $15k per person per year.
In my opinion the 7% rate will not last forever and is likely to be lower in the near future. But where else can you get more than 2% on US government backed bonds now?
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