Taking Advantage of Series I Savings Bonds

Series I Savings Bonds are government-backed Bonds that help consumers fight against inflation. While rates for these Bonds adjust every six months, they offer a low-risk Savings option that is connected to the inflation rate. Because the government backs it, the bond holders are not exposed to any credit risk. In October we told you to buy Series I Bonds in order to lock in an ironclad 9.62% yield. With interest rates rising, bond funds are down this year, making I-Bonds a great way to diversify your investments.

Nonmarketable securities primarily include Series E, EE, H, HH, I Savings Bonds and State and Local Government Series instruments issued to individuals. These Bonds are not traded on the open market and are not subject to the same rate fluctuations as other investments. This makes them an attractive option for those looking for a safe investment.

In Yahoo Finance's ongoing series, 'What to do in a bear market,' we discussed the benefits of Treasury Bonds, TIPS, Treasury notes, Treasury bills, and Savings Bonds. I-Bonds are U.S. government securities with a fixed interest rate equal to the rate of inflation at time of purchase. They are purchased directly from the government, backed by the U.S. Treasury, and offer an interest rate that is adjustable every six months. Furthermore, I-Bonds are exempt from state and local taxes, making them an attractive option for those looking for a safe, tax-free investment.

Series I Savings Bonds are also a great way to protect your investments from inflation. As the inflation rate rises, so does the interest rate on I-Bonds, which helps to protect the value of your investments. Furthermore, the Bonds can be held for up to 30 years, so you can take advantage of the potential for long-term growth.

Unfortunately, there is no option to directly convert Series EE Savings Bonds to Series I Bonds, said Brian Schiess, a certified financial planner with Schiess Financial in Chicago. However, you can exchange your EE Bonds for I-Bonds at a local financial institution. Furthermore, you can also cash in your EE Bonds and purchase I-Bonds with the proceeds.

So if you’re looking for a low-risk, tax-free investment option that is connected to the inflation rate, Series I Savings Bonds may be the right choice for you. With their long-term growth potential and government backing, they are an attractive option for those looking to protect their investments against inflation.

A picture of a stack of US Treasury Bonds with a caption that reads "Protect Your investments with Series I Savings Bonds"