I Bonds: |”A Safe and Inflation-Protected Investment”

Book: Investing for Interest 9: Series “I” Bonds vs. 30-Year Bonds (Great Investing): https://amzn.to/3Py3V7A

Abstract 

I bonds are a type of savings bond issued by the U.S. Treasury. They are a safe and inflation-protected investment, making them a good option for investors who are looking to protect their money from rising prices.

I bonds earn interest that is a combination of a fixed rate and a variable rate that is linked to inflation. The fixed rate is set when the bond is purchased, and the variable rate changes every six months. This means that I bonds will always keep pace with inflation, even if inflation rates are high.

In addition to being inflation-protected, I bonds are also a safe investment. They are backed by the full faith and credit of the U.S. government, so there is no risk of default.

The current composite rate for I bonds issued from May 2023 through October 2023 is 4.30%. This includes a fixed rate of 0.90% and a variable rate of 3.40%.

I bonds can be purchased in electronic form through TreasuryDirect.gov. You can also purchase paper I bonds, but they are subject to a higher purchase fee. The minimum investment for I bonds is $25. You can purchase I bonds in any amount up to $10,000 per person per year.

I bonds earn interest for 30 years. However, you can cash them in after one year without penalty.

If you are considering investing in I bonds, I recommend that you do your own research to decide if they are right for you.

Here are some of the key benefits of I bonds:

* Inflation-protected

* Safe

* Low minimum investment

* Can be purchased online

Here are some of the key drawbacks of I bonds:

* Interest is not paid out until the bond matures

* Cannot be sold before maturity without penalty

* Yield may be lower than other investments in some cases

Overall, I bonds are a good option for investors who are looking for a safe and inflation-protected investment. They are a low-risk investment with the potential to earn a decent return over time.

Article

I bonds are a type of savings bond issued by the U.S. Treasury. They are a safe and inflation-protected investment, making them a good option for investors who are looking to protect their money from rising prices.

I bonds earn interest that is a combination of a fixed rate and a variable rate that is linked to inflation. The fixed rate is set when the bond is purchased, and the variable rate changes every six months. This means that I bonds will always keep pace with inflation, even if inflation rates are high.

In addition to being inflation-protected, I bonds are also a safe investment. They are backed by the full faith and credit of the U.S. government, so there is no risk of default.

Here are some of the pros and cons of I bonds:

Pros

* Inflation-protected

* Safe

* Low minimum investment

* Can be purchased online

Cons

* Interest is not paid out until the bond matures

* Cannot be sold before maturity without penalty

* Yield may be lower than other investments in some cases

Overall, I bonds are a good option for investors who are looking for a safe and inflation-protected investment. They are a low-risk investment with the potential to earn a decent return over time.

Here are some additional things to keep in mind about I bonds:

* You can purchase I bonds in electronic form through TreasuryDirect.gov. You can also purchase paper I bonds, but they are subject to a higher purchase fee.

* The minimum investment for I bonds is $25. You can purchase I bonds in any amount up to $10,000 per person per year.

* I bonds earn interest for 30 years. However, you can cash them in after one year without penalty.

If you are considering investing in I bonds, I recommend that you do your own research to decide if they are right for you.