I Bonds: Should You Sell Your Series I Savings Bonds?


Inflation is a silent killer. With the rapid rise in inflation over the last two years, I bonds became an attractive, safe investment.

With the government reporting lower CPI numbers, the earnings rate of I bonds is less attractive than when investors purchased them in the preceding two years. Given the lower inflation rates, investors are now considering whether they should continue buying or selling existing Series I bonds.

What Is An I Bond And Why Invest In Them?


I Bonds, or Series I Bonds, are non-marketable savings bonds issued by the U.S. Department of Treasury primarily for individuals to purchase and invest in. I Bonds earn a fixed interest rate for 30 years while having an inflation component that varies with inflation expectations each May and November.

I bonds are safe investments issued by the U.S. Treasury to protect your money from losing value due to inflation.

How I Bonds Work?


I Bonds are sold at face value. For example, if someone were to purchase a $100 I Bond, they would pay only $100 and receive the stated interest rate over the next 30 years. Interest rates on I bonds are adjusted regularly to keep pace with rising prices.

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