I Bond Investors Just Got a Surprise Boost
Given the high rate of inflation hitting consumers right now, it's no surprise to see investors trying to do what they can to protect themselves. Yet it's been hard to find a good defense in the financial markets from higher consumer prices, as both stocks and bonds have seen their prices fall precipitously in 2022.
Against that backdrop, the 9.62% rate that Series I Savings Bonds offered between May and October 2022 looked almost too good to be true. Indeed, the rate that will apply to I bonds sold between November 2022 and April 2023 is going down. But there's a key advantage that these new bonds will have that could make them even more valuable in the long run.
Millions of Americans have recently discovered I bonds because of that attractive 9.62% rate. It's essentially risk-free as the U.S. Treasury backs up the bonds with the full faith and credit of the federal government.
Source Fool.com
