I-Bonds

I-bonds

Treasury savings bonds with a 30-year maturity indexed to account for inflation.

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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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Series I Savings Bond

In the United States, a savings bond with either a fixed interest rate or an inflation-indexed interest rate. The inflation-indexed version pays a fixed amount plus an amount adjusted every six months according to the Consumer Price Index. For both types of Series I bonds, the interest rate is announced twice annually. 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-transferable and must either be held or redeemed.