As inflation rises, another low-risk investment is getting more attention: the tried-and-true Series I savings bond known as inflation or I bonds.
These federally guaranteed instruments currently have annualized yields of 7.12%, which you can only collect when you cash out. That represents the second-highest rate on newly issued I bonds since they were introduced in 1998, and it is more than double the 2.232% yield on 30-year U.S. Treasury bonds.
“Interest in I bonds is exploding as inflation continues to spike,” says
Kevin Brosious,
a certified financial planner and president of Wealth Management Inc. in Allentown, Pa. He says that his clients are concerned about rising prices in nearly every category. In December, the consumer-price index rose 7% year over year. “The yield on these instruments beats everything in the fixed-bond market—even…
