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Series I savings bonds are designed to track inflation. https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm https://www.treasurydirect.g

Series I savings bonds are designed to track inflation. https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm https://www.treasurydirect.gov/indiv/research/indepth/ibonds... . I only recently became aware of them and I am not qualified to give financial advice, so I have no idea if they actually accomplish this well.

UncleOxidant 5y ago
They're doing pretty well at this point as they're paying 7.12%. Likely at the rate reset in May they'll pay that much or more for the next 6 months. Only downside is you can only put in $10k/year. If you have a spouse then you can put in $20K/year. Another nice thing about them is that the interest is state-tax free so if you live in a state with income tax it's an added bonus.
- twblalock 5y ago
  The other big downside is you can't get the money out for one year. After that, they are basically liquid.
  - UncleOxidant 5y ago
    Not a huge downside, really. CDs are similar.
driverdan 5y ago
Except they're not a good investment. They pay inflation. So they're approximately equal to a 0% return. Better than keeping money under the mattress but not if you want your money to grow.
- twblalock 5y ago
  The OP asked how to shield money from inflation, and I-bonds are a good shield.