Inflation-Linked Savings Bond

(redirected from I-Bond)

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.
Mentioned in ?
References in periodicals archive ?
A Cook County judge on Monday set a $50,000 I-bond, also known as a personal recognizance bond, and ordered GPS monitoring for a 61-year-old Palatine man who police say attempted to abduct three boys under age 11.
I-bond holders pay a penalty if they opt out within the first five years.
At the National Championship level, the awards even include $100 to $1,000 I-Bond scholarships for successful competitors.
For example, a $50 I-bond sells for $50, and interest will be earned on top of that.
If the fixed I-bond rate remains too far below the real return to EE bonds, EE bonds usually will remain more attractive even in an inflationary period.
The I-bonds are similar in several respects to their older EE savings bond cousins.
Per Middle Deck Shall Be Supplied By Dlw Against Valid I-Bond Govt.
Tax savings: I-Bonds are exempt from state and local taxes, and if the bond is redeemed to pay for college tuition and fees, investors may exclude all or part of the income when calculating their taxed, says Kenneth Johnson, vice president and portfolio manager at Loomis Sayles & Co.
Johnson says I-Bonds should be used to maintain a well-diversified portfolio, which can minimize overall investment risk.