I Bonds

I Bonds, or Series I Savings Bonds, are a type of U.S. government savings bond designed to protect your money from inflation. They earn interest in two ways: a fixed rate and a variable rate that adjusts with inflation every six months. Investors can purchase them for as little as $25, and they are exempt from state and local taxes. I Bonds can be a safe investment option, offering a way to grow your savings while keeping pace with rising prices over time. They have a minimum holding period of one year and a penalty for cashing them in before five years.