Unless you are the victim of some kind of disaster. They are generally considered to be a longer-term investment. What makes them low-risk? They have the support of the United States government. That means your rebate value cannot decrease.
However, just because I bonds have a low risk doesn't mean that you should transfer all your money to bonds I. In general, investors want a balance of risks. Low-risk investments tend to have a lower return. That's why you need to ensure that your investment portfolio is diversified and aligned with your risk tolerance.
I bonds are bonds issued by the United States government that have two components. The first is a fixed interest rate component. Today, that rate is 0.00%, as the Federal Reserve keeps interest rates low. The second component is an adjustment rate for inflation.
Both components are adjusted twice a year, on May 1 and November 1.Recently, the inflation adjustment for May was carried out, which required a rate of 9.62%. The rise in rates made many investors turn their heads and wonder if it was worth buying bonds I. Here are some pros and cons of owning bonds I. Here are some pros and cons of owning bonds I.