<br><div><aside class="gnt_em gnt_em__fp gnt_em_vp__tp gnt_em__el" aria-label="Video - Worried about inflation? Here’s what to expect and what you can do to protect yourself."/><p class="gnt_ar_b_p">The good news is inflation has<a target="_blank" href="http://www.usatoday.com/story/money/2023/12/12/cpi-inflation-report-live-updates/71883816007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener"> eased</a> over the past year.</p><p class="gnt_ar_b_p">The bad news? So has the variable rate on those <a target="_blank" href="http://www.usatoday.com/money/blueprint/investing/how-do-i-bonds-work/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">I bonds</a> you bought back when inflation hit a <a target="_blank" href="http://www.usatoday.com/story/money/2022/07/13/inflation-rate-new-40-year-high-june-cpi/10040997002/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">40-year high</a>. </p><p class="gnt_ar_b_p">The I bonds you purchased in the summer of 2022, which paid a <a target="_blank" href="http://www.usatoday.com/story/money/personalfinance/2022/10/20/i-bond-rate-drop-from-record-high/10536818002/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">record 9.62%</a> when inflation was soaring, are now paying about a third of that.</p><p class="gnt_ar_b_p">But with inflation down and <a target="_blank" href="http://www.usatoday.com/story/money/2023/10/30/americans-missing-high-yield-interest-on-savings-accounts/71380014007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">interest rates up</a>, thanks to aggressive <a target="_blank" href="http://www.usatoday.com/story/money/2023/12/01/interest-rates-may-rise-again-amid-inflation/71763461007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">Federal Reserve rate hikes</a> over the past year and a half, you’ve got a lot of options to <a target="_blank" href="http://www.usatoday.com/story/money/personalfinance/2023/06/11/ibonds-inflation-rates-rise/70304232007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">earn more than those I bonds</a> offer, investment advisers say. </p><p class="gnt_ar_b_p">“You should sell them,” said Daniel Milan, investment adviser and managing partner at Cornerstone Financial Services in Southfield, Michigan. </p><p class="gnt_ar_b_p"><strong>Protect your assets:</strong> <a target="_blank" rel="noopener" data-t-l=":body nav (hys)|e|auto spike click:5|${u}" class="gnt_ar_b_a" href="https://www.usatoday.com/money/blueprint/banking/savings/best-high-yield-savings-accounts/">Best high-yield savings accounts of 2023</a></p><h2 class="gnt_ar_b_mt">What’s the math on your I bonds? </h2><figure class="gnt_em gnt_em_img"><img class="gnt_em_img_i" style="height:440px" fetchpriority="high" data-g-r="lazy" src="https://www.usatoday.com/gcdn/media/2022/04/25/USATODAY/usatsports/i-bonds-paper-form-gettyimages-1335987568.jpg?width=660&height=440&fit=crop&format=pjpg&auto=webp" srcset="https://www.usatoday.com/gcdn/media/2022/04/25/USATODAY/usatsports/i-bonds-paper-form-gettyimages-1335987568.jpg?width=1320&height=880&fit=crop&format=pjpg&auto=webp 2x" decoding="async" alt="I-Bonds in paper form."/></figure><p class="gnt_ar_b_p">The <a target="_blank" href="http://www.usatoday.com/money/blueprint/investing/current-i-bonds-rates/" rel="noopener" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a">latest I bonds</a> from Nov. 1 to April 30, 2024, are yielding 5.27%, <a target="_blank" href="https://www.treasurydirect.gov/savings-bonds/i-bonds/" rel="noopener" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a">according to the U.S. Department of Treasury,</a> down from the record yield in summer 2022. That may not sound so bad since savings, <a target="_blank" href="http://www.usatoday.com/money/blueprint/investing/what-is-a-money-market-fund/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">money market funds</a>, short-term Treasuries and certificates of deposit (CDs) are all hovering near the 5% range. </p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">However, that 5.27% is only for new I bond purchases. It isn’t what you’re earning on I bonds you purchased in summer 2022 to receive the record 9.62%. </p><p class="gnt_ar_b_p">Overall, I bond rates are determined by both a fixed rate set by the Treasury for the 30-year life of the bond and a variable rate that moves with inflation. I bonds you bought in summer 2022 had a 0% fixed rate and a 9.62% variable rate. The variable...</p></div> <style> .wrapper { text-align: center; } </style> <div class="wrapper"> <a class="button" href ="https://www.usatoday.com/story/money/personalfinance/2024/01/03/consider-selling-i-bonds-bought-when-inflation-surged/71965857007/">Read more <span>➤</span></a> </div>
