You would think that a country with the lowest savings rate amongst all of the other industrialized nations of the free world would do more to encourage its citizens to save money. After the US Treasury Department's announcement of higher I bond rates on November 3, you start to ask yourself: Should I spend my money, or save it and earn more?
On December 3, 2007 the US Treasury Department announced it would be reducing the limit on the amount of savings bonds an individual can purchase, to $20,000 annually, effective January 1, 2008. This means that one person can purchase up to $5,000 out-of-pocket of paper EE, paper I, electronic EE and electronic I bonds.
The limit prior to the change was a grand total of $120,000, (or $30,000 each type,) six times greater than the new limit.