Little-Known Inflation Bonds Gain Huge Popularity as Inflation Worsens

I bonds that offer inflation protection are currently paying nearly 10 percent annual rate

Packs of freshly printed $20 notes are processed for bundling and packaging at the U.S. Treasury's Bureau of Engraving and Printing on July 20, 2018. Eva Hambach/AFP via Getty Images

Inflation-protected bonds issued by the Treasury Department have exploded in popularity in recent months as Americans seek safe investments after being battered by the stock and bond markets.

I bonds, inflation-linked savings bonds, currently offer an annual interest rate of 9.62 percent. Investors can purchase these bonds at the current rate through October 2022 by creating a TreasuryDirect account. The rate is valid for six months after the purchase.