Category Archives: Bonds

Series I Savings Bond

Market Minute

December 2021 – Scott Rosenquist, CFA®

Investors continue to search for yield as interest rates remain low and inflation remains high. One place to look is directly from the U.S. Treasury with the Series I Savings bond. The I bond is a savings bond issued by the U.S. Treasury that offers inflation protection. Investors have to purchase I bonds from the U.S. Treasury since they are not marketable securities and do not trade like other bonds issued by the Treasury. The interest rate on an I bond is adjusted twice a year (May and November) based on the Consumer Price Index (CPI). The rate announced last month was 7.12% and applies to bonds bought between November of this year through April 2022. This is attractive relative to other savings alternatives from banks such as certificates of deposit and savings accounts.

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