The consumer-price index jumped 7.5% in January compared to a year earlier, its steepest rise since February 1982, the Labor Department reported. The core price index, which excludes energy and food prices, rose 6% year over year, also marking a nearly 40-year high.
Savings accounts are paying far less than 1%. It’s time to check out I-bonds, US government savings bonds that track inflation. Series I Bonds bought through April 30, 2022 are paying 7.12%. Rates change each May 1 and November 1. Based on recent CPI inflation statistics, I bond rates are likely to continue to pay robust yields. Besides being backed by the US government and keeping up with inflation, I bonds offer income tax advantages.
One option for investors concerned about elevated inflation is to use a portion of their tax refund to acquire paper I bonds. This can be accomplished using Form 8888.
Search for I-bonds on this blog for full details.
Source: Financial Planning for Women