Inflation-Linked Savings Bonds (I Bonds)

U.S. government-issued debt securities similar to regular savings bonds, except they offer an investor inflationary protection, as their yields are tied to the inflation rate.

Available directly from the U.S. Treasury, these debt securities are an exceptionally low-risk investment suitable for the most risk-averse investor; they have virtually zero default risk and inflationary risk.

While relatively risk-free assets such as these usually offer some of the lowest rates of return, it is important to note that I Bonds are usually exempt from income tax. They therefore provide a more attractive after-tax return.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Index-linked Savings Certificates — are inflation linked bonds from National Savings and Investments the state owned savings bank in the United Kingdom. The bond terms are typically 2,3 or 5 years. The returns are linked to the RPI (not CPI) with an escalating premium on top. The… …   Wikipedia

  • Inflation-indexed bond — Inflation indexed bonds (also known as inflation linked bonds or colloquially as linkers) are bonds where the principal is indexed to inflation. They are thus designed to cut out the inflation risk of an investment. [ Unfortunately, income taxes… …   Wikipedia

  • Savings and loan crisis — The savings and loan crisis of the 1980s and 1990s (commonly referred to as the S L crisis) was the failure of 747 savings and loan associations (S Ls) in the United States. The ultimate cost of the crisis is estimated to have totaled around… …   Wikipedia

  • Inflation — This article is about a rise in the general price level. For the expansion of the early universe, see Inflation (cosmology). For other uses, see Inflation (disambiguation). Inflation rates around the world in 2007 …   Wikipedia

  • Zero Coupon Inflation Swap — An exchange of cash flows that allows investors to reduce or increase their exposure to the risk of a decline in the purchasing power of money. In a zero coupon inflation swap, which is a basic type of inflation derivative, an income stream that… …   Investment dictionary

  • National Savings — A wide range of schemes for personal savers, administered by National Savings and Investments, a government agency established in 1969 as the Post Office Savings Department. They include premium bonds, guaranteed equity bonds, Children s Bonus… …   Big dictionary of business and management

  • National Savings — A wide range of schemes for personal savers, administered by the UK Department for National Savings and Investments (established in 1969 and previously known as the Post Office Savings Department). They include premium bonds, guaranteed equity… …   Accounting dictionary

  • List of government bonds — This is a list of categories of Government bonds around the world.=Main issuers==Country by country data=AsiaJPN (AA /A2)Issued By: Ministry of Finance (MoF) *Japanese Government Bonds (JGBs) **Revenue Bonds/Straight Bonds **Financing Bills… …   Wikipedia

  • National Savings and Investments — Type An Executive Agency of the Chancellor of the Exchequer Industry Financial Services Founded 1861 Headquarters …   Wikipedia

  • index-linked — /ˌɪndeks lɪŋkt/ adjective which rises automatically by the percentage increase in the cost of living ● index linked government bonds ● Inflation did not affect her as she has an index linked pension. ▪▪▪ ‘…two year index linked savings… …   Marketing dictionary in english

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.