Bill Would Increase Inflation Savings Bond Limit

Advertising Disclosure: When you buy something by clicking links on our site, we may earn a small commission, but it never affects the products or services we recommend.

Woman with a piggy-bank /

Over the past year or so, Series I government savings bonds have been just about the best place to park your money. Now, federal lawmakers want to make this deal even better.

A new bipartisan bill in the Senate would raise the cap on how much you can invest in I bonds, which were designed to help savers keep pace with rising prices by paying a rate of return that is based on both a fixed rate and an inflation-adjusted rate.

Currently, the purchase limit on I bonds is $10,000 per individual per year, or a total of $15,000 per year if you purchase an additional $5,000 worth of bonds with your federal income tax refund.

However, the new bill — the Savings Security Act of 2022, introduced by Sens. Deb Fischer, R-Neb., and Mark Warner, D-Va. — would raise the total limit to $30,000 per person for any year during which the average annualized changes in the inflation rate exceed 3.5% for a period of six months.

The Consumer Price Index for all Urban Consumers, which is one of the federal government’s gauges of inflation, would continue to be used to determine the inflation-based rate of return on I bonds. However, the $30,000 cap would apply to individuals only, not businesses or trusts.

If the bill were to become law, it would take effect the year after the president signs it.

What happens next?

The Savings Security Act was introduced and sent to the Senate Finance Committee on Sept. 27 but hasn’t moved since.

For it to become law, it must pass the committee, the Senate and House of Representatives must pass identical forms of the bill, and President Joe Biden must then sign it. In other words, the legislation still has a long way to go.

In the meantime, you can follow it on

To let your senators know how you feel about the legislation, contact them.

To learn more about the bill, check out the full text.

Why buy Series I savings bonds?

Series I savings bonds, which some people refer to as “inflation bonds,” are particularly valuable now, thanks to soaring inflation rates. As we have reported, the current rate on I bonds — which adjusts twice annually — is 9.62%. The rate will adjust again in November.

In a statement on the bill, Fischer says:

“The American people are scrambling for ways to protect their earnings from rampant inflation. I bonds are one option consumers should be able to leverage. Arbitrary purchasing caps on I bonds, however, are shortchanging the public from better utilizing the program.”

Series I savings bonds can be a great choice for consumers who want to keep their money in a safe place while also ensuring the value of their money keeps pace with inflation. However, that doesn’t mean they are right for everybody.

For more about whether these bonds are right for you, check out:

Get smarter with your money!

Want the best money-news and tips to help you make more and spend less? Then sign up for the free Money Talks Newsletter to receive daily updates of personal finance news and advice, delivered straight to your inbox. Sign up for our free newsletter today.