Which Is Better for Savers? Comparing the New I Bond Rate to CDs

The new I bond rate isn't as high as some CDs, but it's worth considering for long-term savings goals. Getty Images The Series I savings bond will now earn 3.98% from May 1 through October 31, 2025. That could make it the right investment choice for some savers. A few years ago, I bonds were a hot commodity: a low-risk investment option designed to protect your money from inflation. That's when interest rates on these government-issued bonds jumped to an impressive 9.62%, much higher than the near-zero rates on other savings accounts. When inflation started to cool, I bonds fell out of favor, as the top certificates of deposit and best high-yield savings accounts began offering better returns. Right now, some CDs have annual percentage yields above 4%. While bonds and CDs have a lot in common -- competitive, guaranteed rates and withdrawal penalties if you take money out before a certain point -- they work differently. "Both CDs and I bonds are good options for conservative, low-r ... Read full article.