Treasury Inflation-Protected Securities (TIPS): Like I Bonds, TIPS offer protection against inflation. Their principal value adjusts with inflation, providing a hedge against rising prices.
High-yield savings accounts: These accounts provide a safe place to store cash while earning interest, offering better liquidity compared to I Bonds.
Certificates of deposit (CDs): CDs offer fixed returns over a set period, generally with the best CD rates reserved for longer terms. They tend to be FDIC-insured, which provides a level of security similar to that of I Bonds.
Municipal bonds: These bonds provide federal tax-exempt income and are generally safe, though they may carry slightly more risk compared to I Bonds.
Corporate bonds: For investors seeking higher returns, corporate bonds can offer better yields. However, they come with higher risk compared to government-backed options.
Bond ETFs: Exchange-traded funds (ETFs) that focus on bonds can provide diversification and liquidity, making them a flexible alternative to holding individual bonds.
Series EE Bonds: Another type of U.S. savings bond, EE Bonds offer a guaranteed doubling of value if held for 20 years, providing a predictable return.
Money market funds: These funds invest in short-term, high-quality investments, providing liquidity and a moderate level of return while maintaining a low risk profile.