Hidden in plain sight is a U.S. Treasury yielding more than 7%

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OPINION: I-Bonds may not be as exciting as a get-rich scheme with meme stocks or cryptocurrencies. But they arguably will do more for your long-term financial security.

You’d undoubtedly be skeptical, since if something seems too good to be true it probably is.Read: This simple investment can earn you more than 6% with no risk

I’m referring to a unique kind of savings bond issued by the U.S. Treasury that is indexed to inflation. Known as an I-Bond, its interest rate changes every six months according to the Consumer Price Index’s trailing 6-month change. When the Treasury at the beginning of this month set the rate that will be in place until May 2022, it was 7.12%.How might you use I-Bonds? For insight, I reached out to Zvi Bodie, who has done as much as anyone, if not more, to champion I-Bonds.

The bottom line? I-Bonds may not be as exciting as a get-rich scheme with meme stocks or cryptocurrencies. But they arguably will do more for your long-term financial security. Mark Hulbert is a regular contributor to MarketWatch. His Hulbert Ratings tracks investment newsletters that pay a flat fee to be audited. He can be reached at mark@hulbertratings.com.

 

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