6 key things to know about inflation-indexed bonds paying 9.62 percent

The inflation-indexed Series I savings bonds are red hot right now. Here are key things to know about buying them for yourself and your kids.

The Treasury building in Washington. (Samuel Corum/Bloomberg News)

The inflation-indexed Series I savings bonds are red hot right now.

With the stock market down and savings account rates up a bit but still paying pitiful rates, a savings bond backed by the federal government paying 9.62 percent is like coming inside from an oppressive heat wave into an air-conditioned room.

Now is a good time to buy this inflation-indexed savings bond

The I bond was created as a hedge against inflation. Now that inflation is at a 40-year high, the bonds are a haven for people with funds they don’t need immediately. The 9.62 percent rate is good until the end of October.

Several callers to ASK-POST (855-275-7678), my toll-free line, have been asking about I bonds and sharing their difficulties in buying them. One question in particular kept popping up. People wanted to know how to be sure to pass on the bonds if they died before cashing them.

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