Key points
- I bonds are low-risk investments that can provide a guaranteed return and protect against inflation.
- I bonds have a fixed rate and an inflation-adjusted rate that combine to create the composite rate of return.
- During times of market volatility, I bonds offer comfort because they are backed by the U.S. government.
During the summer of 2022, inflation soared to levels we hadn’t seen in 40 years, resulting in widespread increases in the prices of everyday goods and services. Not only did day-to-day expenses increase, but many people saw significant downturns in their investment accounts as well, leaving them wondering if there was a better way to safeguard their money.
The answer to those woes may lie in Series I savings bonds, or I bonds. These U.S. government-issued bonds pay you back at two different rates: one fixed, currently 1.30%, and one that’s related to the consumer price index, or…
