When inflation is high, Series I bonds are a great investment. They earn an attractive rate that compounds twice a year. You can start small and your investment is backed by the U.S. government.Â
But when inflation is lower, other investments have historically earned higher returns. The stock market, for example, has historically earned a 10% annual return.Â
Series EE bonds can be a good investment if you have a long time horizon and a very low risk tolerance. They can also be useful to pay for future college expenses.Â