Series I Bond
Definition
An inflation-indexed savings bond offered by the U.S. government. Series I bonds pay a fixed interest rate that is lower than the rate of traditional savings bonds, but they also pay a variable rate that increases with inflation (as measured by the Consumer Price Index) and is recalculated semiannually. Series I bonds pay interest for up to 30 years, but there is a penalty equivalent to 3 months of earnings for redeeming the bond before 5 years.
Use Series I Bond in a sentence
“ You may want to try and invest in a series I bond if you feel that it would be a good investment for you. ”
“ We took a look at several options, including a Series I Bond, as it seemed like it might be a good fit for our overall investment strategy. ”
“ When my niece was born, my parents bought her several Series I Bonds for her education on the theory that at least she would always receive more in interest than the cost of inflation. ”
