This inflation-proof bond is paying 9.62%. Here's how to buy it.  The U.S. Treasury Department building at dusk in 2019. (Patrick Semansky/AP) | The government's inflation-protection savings bond right now is like a Birkin bag — highly coveted. With the stock market crashing and inflation rising, people are desperately looking for a place to park their extra cash. Paying 9.62 percent, the relatively unknown inflation-proof Series I savings bond has become a hit with $17.5 billion sold in the six months ending in May, according to the Treasury Department. That's compared with $364 million in I bond sales in all of 2020. If you've got money sitting around earning a little more than 1 percent, if that much, I bonds are an attractive deal. Several callers to ASK-POST (855-275-7678), my toll-free line, have been asking about I bonds. [Now is a good time to buy this inflation-indexed savings bond] There are a couple of things you should know before buying an I bond. — You have to set up an account at TreasuryDirect.gov to buy the bonds. — The interest rate on new Series I savings bonds is 9.62 percent through October 2022. — Individuals can only purchase up to $10,000 in electronic I bonds each calendar year. If your purchase exceeds that limit, it can take up to 16 weeks for Treasury to process a refund. (You can also buy up to $5,000 in paper I bonds using your federal income tax refund). — You pay the face value of the bond. For example, you pay $25 for a $25 bond. — You can't cash the I bond for at least one year. If you cash the bond before five years, you lose the previous three months of interest. — You have to pay federal income taxes on the interest. Now, here's a step-by-step guide to purchasing I bonds, which starts with setting up an account at TreasuryDirect.gov. [How to recession-proof your life] 1. Pack your patience. Seriously. The website says the account setup takes 10 minutes. Maybe for some people if everything goes right. It didn't for me and my husband. It took me 20 minutes to get through the initial setup, and in the end, I couldn't set up an account online (More on that later.) It took my husband about 30 minutes with a snafu on his part. If there is an issue or you make a mistake, the process to fix it is frustrating and archaic. And last month so many people rushed to TreasuryDirect to purchase the government savings bond that the website crashed. 2. Go to TreasuryDirect.gov. Under "Account Login" click the link to open an account. If you're not sure about how to navigate the process, take the guided tour. I also recommend you watch the video on how to set up an account. Lots of readers have said they've had issues with setting up their account and now are having trouble reaching a live person to help them figure out what went wrong. [Answering Ask-Post questions about I bonds, crypto cons, bank accounts] 3. To set up an account, you'll need a taxpayer identification number, such as your Social Security number. You also have to have an address in the United States. You need an email address. You are required to provide at least one telephone number. For more on the remaining steps, click the link below to read the full column. Your feedback If you have a personal finance question for Washington Post columnist Michelle Singletary, please call 1-855-ASK-POST (1-855-275-7678). Send your comments and questions to colorofmoney@washpost.com, but due to the volume of mail, personal responses may not be possible. Please also note that comments or questions may be used in a future column, with the writer's name, unless a specific request to do otherwise is indicated. | 
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