Until recently, experts were falling all over themselves to recommend these Treasury bonds. Are they still worth it? The interest rate on Series I savings bonds now tops 5%, although as investments they're not right for everyone. I bonds are designed to protect your investment from inflation. Currently, I bonds are paying interest rates of 5.27%. As of May 2024, I bonds are returning 4.28%, which is lower than previous rates but still competitive.
I bonds have earned their reputation as an inflation-fighting tool for retirees. They are generally safe investments and can be good options for people who prefer lower-risk portfolios. Series I bonds have been a popular investment recently, offering the safety of a U.S. government-backed security mixed with higher interest rates than savings accounts or CDs. However, the love affair with I bonds may be over as investors shift their focus away from the stock market's unpredictability.
If you're looking for a safe investment that pays a higher interest rate and protects you from rising inflation, Series I bonds may still be a good choice. They offer a reliable option for those seeking stability in their investment portfolio. However, it's essential to consider your financial goals and risk tolerance before investing in savings bonds.