Treasury's I bonds mature in 30 years, but they can be redeemed after 12 months with forfeiture of three months of interest. Given low rates on savings accounts, investors can still come out ahead.
Chris Woodyard
- Treasury's I bonds have seen a big rise in their yield.
- Their rate rises or falls with inflation.
- But they are savings bonds -- yawn! -- and may be overlooked by investors.
Savings accounts are accumulating paltry interest, the stock market gyrates under the weight of pandemic uncertainty and inflation is raging.
What’s a saver to do?
The government, it turns out, has provided a shockingly lucrative alternative – and taking maximum advantage requires action by year’s end.
It’s an inflation-protected, government-backed instrument that currently enjoys a whopping 7.12% annualized yield. Don't expect to see that rate on any billboards, though, and it’s easy to see why I bonds, as they are called, have been overlooked by average investors.
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