Are savings bonds protected from inflation?



Are savings bonds protected from inflation?

With inflation running rampant at 9.1%, Americans are flocking toward Series I Savings Bonds, a government-issued investment that’s protected against inflation. I bonds have both a fixed rate and an inflation rate that’s adjusted every six months.

What are inflation-protected Treasury bonds?

Individuals gearing up for retirement can utilize inflation-protected Treasury bonds, known as I bonds, which offer an interest rate tied to inflation. These issues are available in shorter terms than traditional savings bonds, or EE bonds, and can be laddered to create a continuous income stream.

Are gold ETFs a better inflation protection than Treasury bonds?

However, government bonds are more secure and have also been shown to pay higher rates when inflation rises, and Treasury TIPS provide inflation protection built-in. Certain ETFs that invest in gold and also hold on to Treasuries may be the ideal solution for most investors.

Are bonds a good way to beat inflation?

If this is the case U.S. Treasury Series I Bonds are a good way to beat inflation. U.S. Treasury Series I Savings Bonds are 30-year instruments whose interest rate is reset every six months and are a way to help protect one from inflation.