Savings accounts are typically among the lowest earning investments anyone can ever make. As for high yields, almost all people will typically look to CDs, stocks and other much less conservative but very potentially higher earning investments. I Series Bonds are sort of the middle ground between saving accounts and more some lucrative investments, thus it will provide much better interest rates than saving accounts while remaining very low-risk.
What they are
The great thing about I Series bonds is that they are inflation based, which means they will earn interest based on inflation plus a bit more. That way, even with a greatly fluctuating inflation rate, you can be sure of some earnings. Recently in fact, these helpful bonds have been set at +.7% inflation to further guarantee earnings for these bond holders.
One of the conditions for investing in I Series bonds though is that you don’t touch them for at least a year. The interest rates for these bonds will almost always be higher than for savings accounts; unless by some miracle inflation is very low.
Things to Consider
You really need to have very disposable income to invest in these such bonds, the minimum duration of the investment is a year or annually. Unless you can surely afford to have money to be tied up that long, this really wouldn’t be a good idea for you after all. Should you have the disposable cash though, I Series Bonds are among the most secure investments you can make and it will be of great help for you not just for today but for your future as well.