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No. of Recommendations: 5
Lock in the best risk-free rate in a longgg time.

What do you mean by 'locked in'? I-bonds are variable rate bonds that pay interest that is recalculated every 6 months based on the inflation rate. Sure, the return is high now, because of the current inflation. And because the calculations look at inflation rates over the prior year, there is a floor that you can assume for the rate that will be set in 6 months. But that rate certainly isn't 'locked in' for the 30 year life of the bond - especially considering that the base rate on current bonds is 0%, which means if we return to lower inflation rates, they'll pay little or nothing. And if you cash them in before you've held them at least 5 years (like because the inflation rate and consequently, the interest paid dropped) you will lose the last 3 months of interest. Of course, depending on the inflation rate, that might not be a very large penalty.

I'm not saying don't buy them - I'm just saying that thinking you have a 'locked in' rate doesn't square with how the rate is actually calculated.

AJ
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