YYHJ HFGDT UTYFD The Daily Money: Time to sell those bonds?

The positive development is the recent alleviation of inflation over the past year. Unfortunately, the flip side of this is a decrease in the variable rate on I bonds acquired during the period when inflation reached a four-decade high.

Those I bonds obtained in the summer of 2022, which initially yielded a remarkable 9.62% annual interest amid the peak of inflation, are presently offering approximately one-third of that rate, according to Medora Lee.

However, with inflation on the decline and interest rates on the rise, courtesy of the assertive Federal Reserve rate hikes in the past 18 months, financial advisers suggest there are numerous alternatives to potentially earn higher returns than what I bonds currently provide.

Investment adviser and managing partner at Cornerstone Financial Services in Southfield, Michigan, Daniel Milan, advises, “You should sell them.”

In a changing economic landscape where inflation is receding and interest rates are undergoing adjustments, individuals holding I bonds from the period of heightened inflation may find it beneficial to explore other investment options to maximize returns.

Leave a Reply

Your email address will not be published. Required fields are marked *