Treasury announces new Series I bond rate after nearly $1 billion day

Nov. 1 (UPI) -- Investors moved quickly Friday to secure Series I bonds with an annualized 9.62% rate before the U.S. Treasury announced a new rate Tuesday.

Starting Nov. 1, Series I savings bonds will earn a composite rate of 6.89%. This rate will reflect on bonds issued from now until April 30, 2023. The interest rate is a combination of a fixed annual rate and an inflation rate that is adjusted every six months. Saving bond rates will next be set on May 1, 2023.

Before the deadline to land bonds at a record 9.62% rate, investors purchased $979 million in Series I bonds on Friday. There was so much purchasing activity that the department website crashed.

The one-day mark was nearly as much as was sold between 2018-2020. About $1 billion in Series I bonds were sold in that period of time. The total sold for the week was about $3 billion, and for the month of October about $7 billion. Both totals were records.

In October, 731,336 new accounts were opened, including 95,482 Friday and 359,822 last week alone.

Along with Series I bonds, a new rate of 2.1% was announced for Series EE bonds. These bonds are a low-risk option for saving and earning interest for 30 years or until cashed in. Financial Services guarantees EE bonds will double at 20 years. After 30 years, savings bonds stop earning interest.

Savings bonds can be purchased directly from Treasury.gov.

Last week, Treasury Secretary Janet Yellen said the Treasury will work toward strengthening bond funds in the face of economic turmoil.

"To date, the U.S. financial system has not been a source of economic instability," Yellen said. "While we continue to watch for emerging risks, our system remains resilient and continues to operate well through uncertainties."