Inflation-Linked Savings Bonds

Inflation-Linked Savings Bonds

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.