I Bond Investors: It’s Time To Buy

Summary

  • Series I Savings Bonds purchased through April 30 will have a permanent “real yield” of 0.2%, well above TIPS yields of any maturity.
  • I Bonds carry many benefits over TIPS, including tax-deferred interest and rock-solid deflation protection.
  • Another Savings Bond, the EE Bond, is also very attractive under current terms, offering a 3.5% return for anyone who can hold it 20 years.

I’ve been writing about TIPS and I Bonds for nearly 10 years, and there have few times when I Bonds have reached the level of a SCREAMING BUY. Right now, in March 2020, it’s time to say: “I Bonds are a screaming buy.”

I’ve been pounding the table for I Bonds in recent months, often calling them the best inflation-protected investment in the world. But we’ve now reached a point where I Bonds are amazingly superior to similar very safe investments.

Read my full analysis on SeekingAlpha.com

About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
This entry was posted in Investing in TIPS. Bookmark the permalink.

3 Responses to I Bond Investors: It’s Time To Buy

  1. pankr003 says:

    Got the max about 5 days ago. Thanks for keeping this site going.

  2. J says:

    The advice seems to have turned out to be premature. TIPS yields have changed dramatically, now all are above 0.5% real.

    • Tipswatch says:

      Yes, the 10-year yield made a surprise surge higher, and the 5-year real yield was holding yesterday at 0.52%, better than the I Bond’s 0.2%. I am standing by my recommendation to buy I Bonds, though, because of the superior protection against deflation. But TIPS at these current levels — which might not last long — are attractive and worth considering. TIPS mutual funds and ETFs also look attractive, for the moment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s