<br><div><aside class="gnt_em gnt_em__fp gnt_em_vp__tp gnt_em__el" aria-label="Video - Hedge funds, short selling, short squeeze: what these buzzy terms mean and how they work"/><p class="gnt_ar_b_p">There haven’t been many safe investments that could beat inflation except for the I bond, but even that safety net may soon not pack as heavy an inflation-fighting punch.</p><p class="gnt_ar_b_p">That's because the record high 9.62% interest rate on I bonds issued through October will drop Nov. 1 to 6.48%, significantly lower but still one of the best investments out there, experts say. </p><p class="gnt_ar_b_p">The rate change is based on the change in the consumer price index (CPI) from March to September. The new rate is below the <a target="_blank" href="/story/money/2022/10/13/cpi-report-october-2022-inflation-update/10479079002/" rel="noopener" data-t-l=":b|e|inline click|${u}" class="gnt_ar_b_a">8.2% annual rate of inflation in September</a>, which means when the rate is adjusted for inflation, you’re looking at a negative interest rate. </p><p class="gnt_ar_b_p"><strong class="gnt_ar_b_al">What is inflation?:</strong><a target="_blank" href="/story/money/2022/10/13/inflation-definition-economy/10088183002/" rel="noopener" data-t-l=":b|e|spike click:4|${u}" class="gnt_ar_b_a">Understanding why prices rise, what causes it and who it hurts most.</a></p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p"><strong class="gnt_ar_b_al">Beating the market:</strong><a target="_blank" href="/story/money/personalfinance/2022/07/21/401-k-drop-in-bear-market-how-to-invest/10101552002/" rel="noopener" data-t-l=":b|e|spike click:6|${u}" class="gnt_ar_b_a">I was 12 when I bought my first stock. My portfolio is beating my 401(k)</a></p><h2 class="gnt_ar_b_h2">What is an I bond and how do they work? </h2><p class="gnt_ar_b_p">It’s a 30-year Treasury bond that protects you against inflation. It pays both a fixed interest rate and a rate that changes twice a year with inflation. </p><p class="gnt_ar_b_p">Interest is compounded semiannually, meaning every 6 months a new interest rate is applied to a new principal value that equals the prior principal plus the interest earned in the last 6 months. The bond’s value grows because it earns interest and because the principal value gets bigger. </p><p class="gnt_ar_b_p">You can buy $10,000 worth from the Treasury and another $5,000 using your tax refund. You can cash them in after 12 months, but if you do so in less than 5 years, you lose the last 3...</p></div> <style> .wrapper { text-align: center; } </style> <div class="wrapper"> <a class="button" href ="https://news.google.com/__i/rss/rd/articles/CBMibmh0dHBzOi8vd3d3LnVzYXRvZGF5LmNvbS9zdG9yeS9tb25leS9wZXJzb25hbGZpbmFuY2UvMjAyMi8xMC8yMC9pLWJvbmQtcmF0ZS1kcm9wLWZyb20tcmVjb3JkLWhpZ2gvMTA1MzY4MTgwMDIv0gEA?oc=5">Read more <span>➤</span></a> </div>
