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About Government/Agency Bonds

Are there other inflation-indexed securities available?

Treasury issues another type of inflation-adjusted security called Series I savings bonds. They are sold at face value in denominations ranging from $50 to $10,000 and pay interest according to an earning rate that is partly a fixed rate of return and partly adjust for inflation. I Bonds earn interest for up to 30 years.

Interest earnings on Series I bonds are exempt from state and local taxes and investors may qualify for certain federal tax exemptions on all or part of the interest if the proceeds are used to pay for tuition and fees at eligible post secondary educational institutions.

Series I bonds may be purchased directly from the Treasury or from commercial banks and are often available through employee savings plans. The owner of a savings bond receives a registered certificate and unlike other Treasury securities, savings bonds cannot be resold or given away.

For more information on Series I bonds and on TIPS, visit the U.S. Treasury Department’s Web site, or Treasury’s Bureau of the Public Debt site.

 

All information and opinions contained in this publication were produced by the Securities Industry and Financial Markets Association from our membership and other sources believed by the Association to be accurate and reliable. By providing this general information, the Securities Industry and Financial Markets Association makes neither a recommendation as to the appropriateness of investing in fixed-income securities nor is it providing any specific investment advice for any particular investor. Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and sources may be required to make informed investment decisions.