Series I Savings Bonds
What Is a Series I U.S. Savings Bond?
A Series I savings bond is a U.S. government bond designed to protect investors from inflation. These bonds earn interest through a combination of a fixed rate and an inflation-adjusted rate.
The interest rate adjusts periodically based on changes in inflation.
Why It Matters
Series I bonds help preserve purchasing power over time because their returns increase when inflation rises. They are often used as a safe long-term savings option for individuals concerned about inflation.
Because they are backed by the U.S. government, they are considered low risk.
How Series I Bonds Work
Series I bonds earn interest through two components:
- a fixed interest rate
- a variable inflation rate
Interest compounds over time and accumulates until the bond is redeemed.
Example
An investor buys a Series I bond during a period of high inflation, causing the bond’s interest rate to rise.
Series I Bond vs Series EE Bond
- Series I bonds adjust with inflation.
- Series EE bonds pay a fixed interest rate.
FAQs About Series I Bonds
Why do people buy Series I bonds?
They provide protection against inflation.
Can Series I bonds lose value?
They are designed to preserve principal value.
Where can Series I bonds be purchased?
They are available through TreasuryDirect.
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