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What Series I bonds are and how can they help when inflation is high

Series I savings bonds, issued by the U.S. Department of the Treasury, are designed to protect investors from inflation by offering a fixed rate of return combined with a variable rate that adjusts with inflation, as measured by the Consumer Price Index (CPI). These bonds, which can be purchased through TreasuryDirect.gov, have a minimum holding period of one year and mature after 30 years, with interest earned being exempt from state and local taxes. The article explains that while Series I bonds offer a safe investment with a guaranteed return, they also come with limitations such as a maximum annual purchase limit of $10,000 per person and potential penalties for early redemption within the first five years. Additionally, the article notes that these bonds can be a good option for long-term savings goals, such as funding education or supplementing retirement income, due to their inflation protection and tax advantages.

Read the Full Fortune Article at:
[ https://fortune.com/article/series-i-bonds-explained/ ]