I-Bonds For Inflation Protection: Why Own Them, How They Work, How To Buy Them, Pros & Cons

Series I Savings Bonds, also known as I-bonds, are offered by the US Treasury as a way to protect the purchasing power of your money from being eroded by inflation.

This is protection many investors want badly right now, as inflation has roared back to life over the past year and a half. After decades most spent under 2%, as of the time of this recording, the official Consumer Price Index, or CPI, is currently at a 41-year high of 8.6% annualized:

The way that I-bonds defend against this is they earn a monthly interest rate that’s usually higher than the CPI. So their return beats or comes quite close to the officially-reported inflation rate.

In this video, we explain what I-bonds are, how they work, what their benefits are & how to buy them.