Why The Treasury Is Giving Away Massive Returns That Are "Risk Free" - How Money Works #Short

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    In an effort to create a not-so-boring investment product, maybe get a short squeeze campaign from reddit, and offer a ridiculous return for a low-risk investment, the U.S. treasury pulled a trick out of the Apple playbook and announced the I Bond.
    Well.. okay… not really. You see, Series I savings bonds are inflation-protected bonds backed by the US government, and the treasury announced that they will pay a little under 10% interest through October of this year.
    Unlike your regular government treasury, I bonds have an adjusted variable rate of return that’s tied to the Consumer Price Index, which is the commonly used metric to measure inflation
    Of course, this might sound as great as any apple product, but they do come with some downsides
    First, you can only buy up to $10,000 worth of I bonds per year, and they’re only really good at protecting your cash since you’re not really getting an ROI, you’re just protecting against inflation
    Also, there’s a penalty if you cash out before five years of at least three months of interest, so don’t expect a quick day trade in your Robinhood account to make a quick buck.
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