I Bonds Lose Their Luster With Yield Set to Plunge Below 4%
The popular savings tools will pay an estimated 3.8% when issued next month, with the interest rate plummeting as inflation cools.
The golden age of the I bond appears to be over.
Yields on the popular Series I savings bonds are set to slump after a key measure of inflation showed signs of softening on Wednesday. Just a few months ago, they offered an historic 9.62% rate. Now that figure is expected to fall to 3.8%, putting the return closer to what you can get on certificates of deposit, high-yield savings accounts and money-market funds.