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What is an I Bond?

What is an I Bond?

January 03, 2022
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I bonds are a hot topic as of late. An I bond is a savings bond that earns interest based on combining a fixed rate and an inflation rate. These are really attractive now as the rate is 7.12% on bonds issued between now and through April 2022. The fixed portion stays the same for the 30 year life of the bond and an inflation rate is set twice a year. These bonds must be held for one year and for any that are redeemed before 5 years, you will lose 3 months interest. Although the rate on currently issued I bonds is very attractive, you must make sure they fit into your overall plan. If you have any questions on this or other financial matters, please reach out to me or a member of the Valley Wealth Advisors team.