Series I Bonds – What You Need to Know and Are They for You?
You may have seen a headline or two about Series I Bonds this year. There is a good likelihood you have not heard much about these bonds in the past.
The reason for their recently popularity is Series I Bonds pay an interest rate that is tied to inflation. With the uptick in inflation over the past year, these savings vehicles have become more popular.
You might have asked yourself, should I be buying some?
The articles out there can be full of information and somewhat confusing so we wanted to give you straight forward facts about these bonds and how to consider if you should buy one.
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About Series I Bonds
Below is some key information about Series I bonds. What they are and how to consider if they are right for you.
- In short, Series I Bonds are 30 year bonds that are backed by the US government and are usually considered to be a safer alternative to stock investments.
- While being a 30 year bond, you can choose to cash in a Series I Bond earlier than that. Ideally, you would hold the bond for at 5 years to avoid penalties.
- They can be cashed in after 1 year but you will give up 3 months of interest. Given that time frame, Series I bonds can be a good option for cash that you will need in the next 3-5 years.
Click on the visual below for more details and information.
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