Hi guys. I'm interested in Series I bonds. I want to know how they work before investing in them.
1) Is it true that the interest rate on them can change every 6 months? For example, if I buy one at 5% now and the Fed increases rates which in time would decrease inflation, would the govt decide to lower the rate of my bond to 3%? So the interest rate on my bond can change by the whim of the govt?
2) Also, how can the series I bond yield become less attractive over time as interest rates rise if yields on other govt bonds can reach as high as series I bonds?
3) How long are the maturities on them?
4) Does it make sense to invest in them compared to other investments?
5) Can I invest $130,000 in them?
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Submitted March 12, 2022 at 02:31AM by pilope https://ift.tt/Zx2kF5W
