Ask Terry Questions I bonds interest

I bonds interest

By Terry Savage on August 20, 2022 | Chicken Money

Can you withdraw the earned interest each year? Or does all the interest remain in the account until you redeem the I bond?

Terry Says

No all the interest — minus any penalty of 3 months loss of interest if you redeem before 5 years — remains in the account. You pay taxes when you cash the bond in. But no state taxes!

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