Key points
- Inflation-linked I bonds can make a fine gift for friends and family.
- The gift provides compound interest accrual over the life of the bond.
- The recipient will have to wait at least a year to cash in.
Cash tops many people’s wish lists. While it may be easy to slip a few bills in a card, you could do one better by gifting a savings bond.
Savings bonds may be considered less exciting. But they’re perfect for helping a friend or family member save for the future. Series I bonds have a competitive interest rate and are designed to ensure their value keeps up with inflation.
The process for gifting savings bonds isn’t all that difficult, as you’ll see below.
What is an I bond?
An I bond is a U.S. government-backed investment. It pays a combined rate comprised of a fixed rate and an inflation rate. The current fixed rate is 1.30%. The current inflation rate is 1.48%. That brings the…
