What Are I-Bonds?

Video Transcript

"My name is Bill Rae. I'm with Alumni Financial Services. I've been in the business and finance world for well over 20 years and your question is what are I-bonds. Well that's an excellent question. I guess first of all we should say a bond in the finance world is a security in which an authorized issuer holds an obligation to a holder. Fancy words for someone who borrows money and agrees to pay back the person who lends the money and in a certain time at a certain interest rate. The I-bond is an inflation protected low risk bond that comes from the government. You can buy I-bonds from payroll deduction at your local institutes or directly from your US government. One of the best websites you might want to check out to learn more about I-bonds is www.treasurydirect.gov. An I-bond is a low risk excellent vehicle. We always recommend that when you're looking around make sure you understand the agreements of the contracts you're about to sign, make sure you understand what's required of you, when and how you get your money back and what return on your money you should expect and by all means seek sound competent advice from a licensed professional. My name is Bill Rae. I'm with Alumni Financial Services and as always we're here to help you build wealth."