January marked the best month on record for Series I savings bonds as Americans bought $4.26 billion worth of the assets.
- Americans bought $4.26 billion worth of Series I savings bonds in January, according to the U.S. Treasury Department.
- The bonds brought in $3.29 billion in January 2022 and just $106 million the year before.
- The surge of the bonds comes as the U.S. has been inflicted with high inflation rates as the I bonds are intended to protect investors from inflation.
- The current interest rate of I bonds is 6.89%, although it’s down from a record high of 9.62% in the past six months.
Why it’s news
I bonds have been surging as investors are pouring money into the safe securities to protect their money from market uncertainties.
Americans bought $4.26 billion worth of Series I savings bonds in January, marking the best month on record for the bonds, according to the U.S. Treasury Department. Many experts say clients are flocking to the bonds as it helps to keep money safe amid the ongoing inflation and recessionary outlook.
I bonds are intended to help protect money from inflation, making it a top choice among investors trying to escape rising inflation and market uncertainty.
There is a $10,000 cap on I bonds that resets every calendar year, so the first month of 2023 has been a big one as many investors begin pouring money into the safe haven.
I bonds have both a fixed rate and a variable rate. The fixed rate remains the same, while the Treasury Department changes the variable rate twice a year on the first business day of May and November.