I Bond Rates Are 3.98% Today. Should You Invest?

Getty Images With the stock market taking major tumbles recently, low-risk investors might opt for a safer vehicle for their savings: government-issued I bonds. Between May 1 and Oct. 31 of this year, the new interest rate for I bonds is 3.98%. Series I savings bonds became popular when inflation surged in early 2022, earning a record 9.62% back in annual interest. Though today's I bond rate is far less than that, these bonds are designed to keep pace with inflation, earning both a fixed rate for the life of the bond and a variable inflation rate adjusted twice a year. "Together, these components make I-Bonds a flexible investment option for conservative investors who are sensitive to changes in inflation rates," said Stephen Kates, a financial analyst with Bankrate. Though 3.98% isn't the highest annualized interest rate out there, it's comparable to some of today’s best high-yield savings accounts and certificates of deposit. Given the threat of inflation inching back up with Pr ... Read full article.