Unique Opportunity: I Bonds As An 11-Month Investment

Summary

  • We now know the I Bond’s next inflation-adjusted variable rate, which is rising to 1.68% from the current 1.06%.
  • The permanent fixed rate, currently 0.0%, will be reset on November 1, but is highly likely to remain at 0.0%.
  • The I Bond’s current terms allow it to be used as an 11-month investment that will outperform other safe short-term investments.

Everyone knows I am a big fan of U.S. Series I Savings Bonds, an investment offering returns that will track inflation closely with total safety, tax-deferred interest and solid protection against deflation.

Right now, in our interest-rate-suppressed environment of October 2020, I Bonds have become an attractive short-term (meaning 11-month) investment, while retaining the option to hold them much longer, up to 30 years.

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.
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