Now's the Perfect Time to Buy I Bonds (Especially for Retirees)
If you're not familiar with savings bonds, you may be missing out on a slow-growing investment that typically comes with a secure payout. That's because these types of bonds are backed by the U.S. government, and they earn interest during a specific time period.
Unlike riskier investments, it's almost impossible to lose money on an I-bond (unless you forget to cash it in at the right time). And while it doesn't have as big of a payout as some of those flashier options, it's a great way to slowly build wealth without having to do too much. Experts are advising people to go ahead and jump into the I-bond game right now, since rates have started to rise, increasing the amount of money you can make with your investment.
I-bond Rates are on the Rise
While we all know that inflation continues to rise, USA Today says that there may be a way to profit from it. That's because rising costs of everyday items are also pushing the value of I-bonds up, and the publication says the latest round of these government-backed investments is a whopping 4.26 percent.
That's up from 4.03 percent in the last six months, which means that people who buy I-bonds between now and Oct. 31 stand to make a lot more money than those who have purchased them in the past few years.
If you're unfamiliar with how these bonds earn interest, it can be a bit confusing. That's because they accrue at both a fixed and variable rate, with a .9 percent fixed earnings cap and a 1.67 percent variable one.
Related: The Secret To Boosting Your Social Security Check by 30 Percent
I-bond Rates Are Higher Than Other Investment Options
Currently, you can't do much better than the I-bond when it comes to a secure investment. That's because USA Today says other government-backed options are still lower than the I-bond, like T-bills, which have a yield below 4 percent.
Similarly, CDs, money market accounts, money market funds, and high-yield savings accounts all lag the I-bond in payouts, making them a smarter choice for risk-averse investors.
Related: Why Your Social Security Benefits Might Be Taxed for the First Time Ever
Why Are I-bonds Good for Retirees
With all the different investment options out there, you may be wondering why I-bonds are so much better for retirees than the other picks. The main reason is that they literally cannot lose money.
Since they are backed by the government, they are guaranteed to come with a payout, even if the economy begins to deflate and the inflation rate drops below zero. Another perk? There are no state taxes on the interest for these bonds. Not only that, but USA Today says you can also defer your federal taxes for these bonds as well, often for up to 30 years or whenever the bond matures, giving you a little bit of breathing room when it comes to your tax liability.
But, of course, there are lots of other investment opportunities to consider, especially if you have big goals in retirement. If you're wondering whether or not I-bonds are right for you, you should reach out to a financial advisor to get more info.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
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This story was originally published May 6, 2026 at 1:27 PM.