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In three previous columns I made the case for investing in I Bonds as a way to get risk-free yield; described how to buy them; and explained how I Bond interest can be recognized tax free when the bonds are cashed in for college. This has led to discussions on the Bogleheads.orgforum and direct e-mail questions and comments from readers. 

Why such a low annual purchase limit?

One of the most frequent questions relates to annual purchase limits. Here’s how dpbsmith put it: “What I don’t understand is why the Treasury cut the annual purchase limit from $30,000 to $5,000 in one fell swoop in December 2007, with only thirty days warning and no convincing explanation. Why did they change the amount you can buy?”