We think Series I saving bonds is a shining example and devote this article to that financial security. We will highlight their features, benefits, and drawbacks.
2. Inflation-Protected Security As Inflation Rises
The Series I savings bond reflects the highest US inflation rate at 8.5% in March 2022, since the US Treasury created the series I bonds in 1998.
3. Shares Similarities With Series EE Bonds But Far Better Returns
Series I savings bonds have a 30-year maturity compared to the 20-year maturity of the EE bonds.
4. Inflation Protection: How Is the Interest Rate Determined?
The composite interest rate on the series I savings bond combines two different rates, a fixed rate like the series EE bond and the inflation rate.
5. Ease of Purchase
You can buy these bonds electronically by setting up an account on TreasuryDirect or in paper form, using your federal income refund.
6. Have An Interest Rate Floor And No Risk of the Bond Going To Zero
When deflation occurs, and prices go down in contrast to inflation, a bond could reflect a negative inflation rate.
7. Purchase Limitations
These bonds make an excellent investment for those who want to invest, don’t have a lot of money, worry about the security’s credit risk, and fear losing money.