Series I bonds are attractive because they help protect your money from inflation. This guaranteed doubling means any Series EE bond held for 20 years will have an effective interest rate of 3.5%. Regardless of the rate, the bond’s value doubles from its purchase price to its par value (face value) 20 years after the bond’s issue date.

In the right circumstances, they can be good for people wanting their money to work for them with minimal risk. Any Series EE bond issued after May 2005 earns semiannual interest installments paid at fixed rates. Series EE bonds, which become unattractive when inflation is high, are securities that have been sold by the U.S. This means that, as long as the government keeps paying its debts and meeting its financial obligation, investors will receive what the bond terms promise them. These bonds are backed by the “full faith and credit” of the U.S. You can purchase both types of savings bonds electronically through the U.S. There are two types of savings bonds issued in the United States. If you want to save for your child’s education in 20 years, a savings bond can be a great tool to do so. For example, if you’re planning on buying a home in the next five years, tying up the money you need for a down payment in a savings bond isn’t the best idea. When buying a savings bond, consider how much money you can put away for the most time to maximize your returns. The more time a savings bond spends maturing, the more compound interest you earn.

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