Annual inflation is still roaring, but the I Bond formula looks back six months; expect a drop of about 3 percentage points
There is an investment that is 100% backed by the U.S. government, never loses its value and is paying more than 7% interest a year. So, why haven’t most Americans heard of Series I Savings Bonds? WSJ’s Dion Rabouin explains. Photo: TNS/Zuma Press
Inflation-adjusted Series I savings bonds have been the most enticing place to park your cash this year—nearly 10% interest, backed by the U.S. government, the safest investment around. In a few weeks, a little of the luster will fade.
I Bonds would likely pay about 6.4% interest beginning Nov. 1 if the consumer-price index rises as economists expect by 0.2% monthly and 8.1% year-over-year. Savers loaded up on I Bonds when the rate leapt to 9.62% in May, the highest interest rate since I Bonds were introduced in 1998.
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