The bond market is viewed as a very unattractive investment option as the interest rates are low and the investor can earn only a small bit of money only if the inflation rate is below the interest rate offered by the treasury department where the bonds are issued. Hence the inflation rate played a major role while the bonds are matured and depending on the inflation rate at the investment time and at the maturity time, one can decide the amount of return earned by these bonds. Hence due to the inflation rate, investors were hesitant in investing in the bonds and looking at this scenario, I bonds were introduced to hedge with the inflation rate and the I Bond Interest Rates were attractive enough to make the investors invest in the I Bonds. The I Bond ensured that the investors received a minimum of 1 percent higher than the amount invested on a semi annual basis. The I Bond rates are revised once in 6 months after hedging with the inflation rate from an investor perspective and mostly speculators are not interested in the I bond rates as they consider these are way lower than the equities. The interest rates interests the retired persons and most of the pensioners invest their entire provident fund amount in these I bonds offering an attractive I Bond Interest Rates from the perspective of these pensioners and senior citizens. The I Bond Interest Rates are an excellent customization from the treasure department to attract the investors to the bond market which looked very unattractive among the investors offering a very low but assured return on maturity. I Bond Interest Rates offered are usually above the inflation rate and assures the investors that the return will be attractive and the chances for their money to get appreciated over the time is also certain. The time value of money concepts are usually neglected in bond investments and this formed a great draw back for the bond investments and in the I Bond Interest Rates these draw backs are overcome by considering the time value of money concepts and ensuring that the investor earns more than the inflation rate. I bond interest rates offered by the treasury department are a boon to the retired community and the pensioners in keeping their investment safe and getting the right assured return above the inflation rate.