Investors looking for refuge from the unpredictability of the stock market have flocked to the security of inflation-protected I bonds since they swelled above 9.62 percent in the spring of 2022.
Cooling inflation has been steadily pushing returns lower, cutting them nearly in half, until now: This month, the Treasury Department announced a new rate of 5.27 percent for I bonds, up from 4.30 percent.
If you’re searching for a safe investment with a yield that keeps pace with inflation, here’s what you need to know about I bonds and what the U-turn on rates means.
B.O.M. — The best of Michelle Singletary on personal finance
If you have a personal finance question for Washington Post columnist Michelle Singletary, please call 1-855-ASK-POST (1-855-275-7678).
My mortgage payoff story: My husband and I paid off the house in the spring of 2023 thanks to making extra payments and taking advantage of a mortgage recast. Even though it lowered my perfect 850 credit score and my column about it sparked some serious debate with readers, it was one of the best financial decisions I’ve made.
Credit card debt: If you’re in the habit of carrying credit card debt, stop. It’s just a myth that it will boost your credit score. For those looking to get out of credit card debt, see if a balance transfer is right for you.
Money moves for life: For a more sweeping overview of my timeless money advice, see Michelle Singletary’s Money Milestones. The interactive package offers guidance for every life stage, whether you’re just starting out in your career or planning for retirement. You can also purchase a copy for yourself or as a gift.
Test yourself: Not rich and wondering what it’ll take to build your wealth? Take this quiz for my wealth-building tips.
