Soaring interest rates in the U.S. have boosted the cost of everything from mortgages to credit cards, socking households still hurting from the high inflation. The silver lining? It's also significantly boosted interest rates on savings accounts and CDs.Another investment savers may want to consider that has benefited from the upward drift in rates is Series I savings bonds, known as 'I-bonds.' The U.S. Department of Treasury raised the rate on I-bonds last week to 5.27%, up from 4.
I-bonds are a good investment as long as inflation remains high, Papadimitriou said. But if the Fed continues to pause its interest rate hike like it did in September, the lure of I-bonds could vanish, he said. 'It's very hard to predict the future,' Papadimitriou said. 'If someone had a crystal ball and say 'Oh look, inflation is going to keep going up for the next few years and it's not going to come down,' then maybe an I-bond is a good idea.