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Series I bonds have been a popular investment recently. The bond gives savers the safety of a U.S. government-backed security mixed with inflation protection, resulting in a composite rate that’s currently 4.28 percent annually.
Now, given that solid yield, some investors may be wondering whether they can use the Series I bond in place of a 529 account to save for college expenses. Here are the pros and cons of that approach and why you might or might not want to use the Series I bond for college savings.
What is a Series I bond and how does it work?
A Series I bond, also known as an I bond, earns interest in two ways: a fixed interest rate and a variable rate that adjusts to the level of inflation every six months. The variable rate adjusts higher or lower as inflation rises or falls, offsetting the impact of inflation and protecting your money’s purchasing…
