IBonds tax
Hi Terry,
I am thinking of buying I bonds after reading your email on 8/28. Do you pay tax every year for the earned interest or when you sell them? Also, are the interest sent to you or stay in the account?
Thank you so much for all the information!
LA
Terry Says
As noted in the column on my home page, interest is added to your account, on a delayed basis. You don’t pay taxes until you cash the bonds in. You MUST hold them for one year. There is a three months loss of interest penalty if you cash them in before 5 years
