How to buy I bonds for your kids

Key points

• You can buy inflation-protected Series I bonds in a child’s name.
• You can purchase an I bond for as little as $25.
• The interest earned on I bonds is subject to federal taxes.

Opening a birthday card with a savings bond inside was an annual tradition for many of us. It turns out the relatives who gave those bonds were on to something.

While not the flashiest gifts, I bonds are a safe investment designed to keep pace with inflation. They grow for decades and can provide kids with a source of cash as they transition to adulthood.

Today’s savings bonds are more likely to be electronic than paper. But they still make great gifts. Here’s what you need to know if you’d like to buy I bonds for kids.

What are I bonds? 

I bonds are savings bonds that offer both a fixed rate of return and a variable rate tied to inflation. They’re an attractive option for those looking for a secure…