The U.S. government's I bonds, which are linked to inflation and offer a nearly risk-free investment, will now pay 4.28% annual interest until October 2024. The fixed rate makes them attractive for long-term investors despite falling rates. However, they may not be suitable for short-term savers with better options available.
The annual rate for newly purchased Series I bonds may drop below 5% in May, from the current 5.27%. While short-term investors may have better options with CDs or savings accounts, the I bond's fixed rate could still appeal to long-term investors aiming to preserve their purchasing power.
