Let’s Talk… Series I Savings Bonds or Inflation-Protected Bonds (I Bonds)!
In this current economic environment and uncertainty, I Bonds may be an investment to look at for your portfolio.
Here are some points that you should keep in mind:
- First, the interest rate is a combination of a fixed rate that stays the same for the life of the bond and an inflation rate that is set every six months based on the Consumer Price Index. As of today, March 2 2022, the yield is a little over 7%.
- Second, you can buy I Bonds on www.treasurydirect.gov but realize you are limited to $10k per person per year.
- Third, I Bonds earn interest for 30 years, unless you cash them first. You can cash them after one year. But if you cash them before five years, you lose the previous three months of interest.
- Lastly, they are issued by the US Treasury so they are backed by the full faith and credit of the US government.
If you’re curious about how the I Bonds can fit in your portfolio, feel free to reach out anytime.
The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
