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Finance Dictionary and Glossary of Investment Terms
Series I Bond
An inflation-indexed savings bond offered by the U.S. government. Series I bonds pay a fixed interest rate that is lower than the rate of traditional savings bonds, but they also pay a variable rate that increases with inflation (as measured by the Consumer Price Index) and is recalculated semiannually. Series I bonds pay interest for up to 30 years, but there is a penalty equivalent to 3 months of earnings for redeeming the bond before 5 years.
A non-marketable, interest-bearing U.S. government savings bond that is a combination of two separate rates: 1) Fixed Interest Rate 2) Variable Inflation Rate (adjusted semiannually)