I will admit I have only recently looked at US Savings Bonds as an investment option. Series I USA savings bonds are based on the inflation rate and given how strongly the Fed has been surpassing interest rates this offers an option to get a higher rate of interest. The rate is calculated as follows:
Composite rate = [fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate)]
2.22% = [0.0020 + (2 x 0.0101) + (0.0020 x 0.0101)]
This is calculated based on a fixed rate of .2% (showing how depressed interest rates are) and 1.01% inflation rate for a 6 month period (which also is low but compared to interest rates pretty high).
You may buy series I US savings bonds online via TreasuryDirect. In a calendar year, you can acquire up to $10,000 in electronic I bonds.
continue reading: US Savings Bonds – Actually a Good Investment Option