Return on I Bonds Drops to 4.3%, but They May Now Be a Better Long-Term Investment

There’s an investment that’s 100% backed by the U.S. government, never loses its value and is paying more than 7% interest a year. So, why haven’t most Americans heard of Series I Savings Bonds? WSJ’s Dion Rabouin explains. Photo: TNS/Zuma Press
The interest rate on I bonds is 4.3%, down from 6.89%, the Treasury Department said Friday. This rate will apply to I bonds purchased now and for the next six months.
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Though the new rate is less than half the 9.62% offered last year, when the inflation-adjusted savings became so popular investors crashed Treasury’s website, financial advisers say they may now be a better bet for the long term.