JOURNAL ARTICLE

What Series I bonds are and why they're a smart investment when inflation is high.

  • Published In: Fortune.com, 2025. P. N.PAG 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Flanagan, Glen Luke 3 of 3

Abstract

The article focuses on Series I bonds, which are U.S. government-issued savings vehicles designed to provide a safe investment option that offers inflation protection. Currently, these bonds earn a composite interest rate of 3.98% for the period from May 2025 to October 2025, with a fixed rate of 1.10%. Series I bonds feature a combination of fixed and variable interest rates, ensuring that the purchasing power of savings is maintained even during high inflation. They are exempt from state and local taxes, and if used for qualified education expenses, the interest can also be excluded from federal income tax. The bonds must be held for at least 12 months, and early redemption incurs a penalty if done before five years. [Extracted from the article]

Additional Information

  • Source:Fortune.com. 2025/05, pN.PAG
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2025
  • Accession Number:185073825
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