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Definition: Inflation Linked Saving Bonds
Inflation linked saving bonds or the I bonds are the type of bonds from United States Treasury which are used by investors to protect themselves against inflation. In the other way ,The investors add this bond to their portfolio for two reasons.
Firstly, they are the fixed income bonds and will never lose money.
Secondly as these bonds are backed by US treasury, investors consider this investment a safe and protective investment.
I bonds are the long term investments and the rate are revised in every 6 month considering the present inflation rate. Also there is a lock in period of 12 month, during which the bonds cannot be traded. The life span of I bonds are usually 30 years after which as the general bonds, investors get the face value plus the interest earned during this period.
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