How to buy I-bonds, the surprise hot investment of 2022
CBSN
Stocks and bonds alike have plummeted this year, taking the wind out of retirement savings and brokerage accounts. Meanwhile, the interest rates on the highest-paying savings accounts barely reach 3% — less than half the rate of inflation.
But there is one financial vehicle that offers a hefty return to savers who don't need to spend their money immediately. Series I savings bonds — commonly known as I-bonds — currently offer an interest rate of 6.89%. While that's lower than the 9.62% they offered during the six months that ended November 1, it's still an attractive rate for savers who would otherwise be putting money into a savings account or CD.
Typically a niche investment vehicle, I-bonds have exploded in popularity in the last two years as inflation has reached a 40-year high. The Treasury issued nearly a billion worth of I-bonds last Friday during a surge of interest from buyers that temporarily crashed a government website.
