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Klingman Insights
May 4, 2022
With inflation rates we have not seen for decades, an investment option not frequently used by high net worth individuals in recent years has become increasingly attractive. Specifically, Series I savings bonds (“I bonds”) are a type of bond offered by the US government that is designed to protect cash holdings against inflation. Unlike other government bonds that have fixed interest rates, the interest rate on I bonds varies with inflation, thereby protecting cash in high inflation environments like we are currently seeing. The current interest rate for I bonds is 9.62%. (The rate, which adjusts every 6 months, had been 7.12% through April.)
The following Forbes article provides a useful overview on them: https://www.forbes.com/advisor/investing/what-are-i-bonds/
A couple of key aspects to highlight:
For those of you who are interested in purchasing I bonds, you must do so directly with the US treasury. (Unfortunately, we can’t do it for you.) You can follow these steps: