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Inflation-Linked Savings Bond
(redirected from I Bond)

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Inflation-Linked Savings Bond
In the United States, a savings bond with an inflation-indexed interest rate. This bond pays a fixed coupon plus an amount adjusted every six months according to the Consumer Price Index. These bonds are sold at face value and pay par upon maturity, which is 30 years after purchase. Series I bonds not held for at least five years are subject to a redemption penalty. Federal taxes on interest are deferred until redemption or maturity. Savings bonds are non-transferrable and must either be held or redeemed.


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You must own an I Bond for a minimum of one year, its interest-earning period is 30 years, and there are early redemption penalties.
Series I Bonds: I bonds are bought at full face value; a $50 I bond costs $50.
The underlying 'AAA' rating on the class I bonds reflects the credit quality of the trust estate's collateral and the adequate level of debt subordination of the class II bonds, which provides credit protection against potential loan losses, cash flow shortfalls, and revenue shortfalls.
 
 
 
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