Fretting about inflation? I bonds, an inflation-protected and nearly risk-free asset, may soon pay a higher rate, according to experts. Here’s what to know.
If you’re rattled by soaring prices, I bonds, a popular inflation-protected and nearly risk-free asset, may soon become even more appealing, experts say. While I bonds currently pay 7.12% annual returns through April, that rate may jump to 9.62% in May, according to Ken Tumin, founder and editor of Depositaccounts.com, who tracks these assets. I bond returns have two parts: a fixed rate and a variable rate, changing every six months based on the Consumer Price Index. The next change, linked to March data, will reflect an 8.5% growth in annual inflation, the latest numbers released by the U.S. Department of Labor on Tuesday. Here’s a look at more stories on how to manage, grow and protect your money for the years ahead. Of course, the 9.62% rate is an estimate.
