With inflation at highs we haven’t seen since the early 1980’s, government issued “I Bonds” have been a hot topic. We want to provide everyone with a general overview of how they work. An I Bond is a savings bond that earns interest based on combining a fixed rate and an inflation rate. The fixed rate (which is currently 0%) is fixed for however long you hold the bond and the inflation rate (currently 9.62%) can change twice a year based on when you purchased the bond. This means that I bonds are currently paying 9.62% annual interest through this October 2022. The interest is compounded and is added to the principal semiannually. The interest rate on the bond can never go below 0%. Individuals can purchase a maximum of $10,000 total in a calendar year. You can also buy an additional $10,000 through estates, businesses, and trusts per year.