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Series I savings bonds issued by the federal government appear to be coming back in vogue.
The interest rates for I bonds, as they’re commonly called, are on the rise again. The Department of the Treasury announced Tuesday that the new rate for I bonds issued between November 2023 and April 2024 is 5.27%. The previous annualized rate for bonds purchased over the last six months was 4.30%.
Because they're designed to insulate savers from inflation, I bond rates are recalculated every six months based on recent trends. Stubbornly high prices have contributed to the attractive rates of the government savings bond over the past few years.
While the current yield is far from the all-time high of 9.62% notched in May 2022 — when inflation was through the roof — 5.27% is still historically quite high.
Investors who are looking for a safe, long-term hedge against rising prices may have a particularly good reason to buy I bonds during this six-month cycle.
"We’ve had a long wait for a super-safe return this attractive," Dave Enna, I bonds expert and founder of financial blog TIPSWatch, wrote Tuesday in reaction to the new rates.
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