Series I Bond
Series I Bond is a savings bond issued by the U.S. Treasury. Series I Bond pays both fixed interest rates and variable interest rate, which are calculated on semi-annual basis and increases according to inflation. However, fixed interest rate is lower that the rates of traditional saving bonds.
While Series I bonds is able to provide returns for up to 30 years, there is a penalty charged if the bond is redeemed before 5 years period, and the amount is equal to 3 months of earnings.
These bonds are issued and bought in order to provide both security and returns.
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