I-bonds

I-bonds

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

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.

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.
References in periodicals archive ?
Tammar Martinez, 18, and Juan Arellano, 19, both of Bartlett, were charged with burglary and given $30,000 I-bonds, which means they do not have to post any money to be released from custody.
though only about 23% were charged with violent crimes; I-bonds made up
bonds that required electronic monitoring, and 19% were I-bonds. (96)
Siegel has long advocated stock-heavy portfolios, while Bodie has frequently, and passionately, warned investors against taking unnecessary risks, advocating portfolios made up of inflation-protected savings bonds (I-bonds) or Treasury inflation-protected securities (TIPS).
Low-risk Treasury Inflation-Protected Securities or TIPS and I-bonds' returns, however, are linked to the inflation rate to ensure a real return on your investment.
The I-bonds are similar in several respects to their older EE savings bond cousins.
In addition to the inflation protection, I-bonds differ in another important respect from EE bonds.
I-Bonds, another offering, are pegged to the CPI as well, but offer investors less flexibility.
Also called inflation-adjusted savings bonds, I-bonds are a very safe investment because market volatility doesn't affect your principal or earned interest.
Conservative investors can purchase inflation-adjusted bonds (e.g., TIPS, I-Bonds).
Investing in stocks would probably be too risky for you right now, so I suggest placing any money you have to invest in inflation-indexed treasury bonds (I-Bonds).
I-Bonds are inflation-indexed bonds, which means they are designed to keep pace with the cost of living by paying an interest rate that is guaranteed to be above the inflation rate.