It's not hard to figure out why. These U.S. government-back bonds pay a fixed rate throughout the life of the bond plus an inflation-based adjusts every six months based on changes in the consumer price index.
These bonds come with some key risk protections, too. Unlike other types of bonds, I bonds aren't available to buy or sell on the secondary market. That means they're not susceptible to price fluctuations based on investor demand or movements in interest rates. . Not only has that made more traditional bonds more attractive — a 1-year Treasury currently yields 5.03% — but it can dampen I bonds' appeal.
And you won't be able to buy these using your brokerage account. You have to buy I bonds online from the U.S. Treasury, an experience thatIf you're aware of the intricacies surrounding these bonds, they can still be an attractive holding for certain types of investors. After all, it's hard to argue against he appeal of protecting your portfolio from inflation, which over time erodes the value of your investments.
MakeIt I bonds way to go!
MakeIt I bought my IBonds when they paid 9.3% interest. Holding for years.
MakeIt They pay 6.9%. Inflation is about 6.9% (officially). You get to keep your buying power, and that's it.
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