United States

a U.S. savings bond designed to protect the purchasing power of your principal and guarantees a real fixed rate of return above inflation for the life of the bond (10 to 30 years). The current series I savings bond, called I-bond for short, guarantees 3% above inflation. You can purchase up to $30,000 worth of the bonds each year, you can never lose principal, earnings are free from state and local taxes, and federal taxes are deferred until you redeem the bond. Plus, there are no fees when you buy or sell these bonds. Although you can cash an I-bond 6 months after the issue date, there is a 3-month earnings penalty if you redeem them in less than 5 years. I-bonds are sold in denominations of $50 to $10,000 at most banks and also on-line at www.savingsbonds.gov.