People consider the inflation rate and consider investments in bonds will degrade the value of their money and never invest or save and live the life for the moment. To encourage savings, the government has introduced these Ibonds or inflation protect bonds to hedge against inflation and get the benefits through the fluctuations in the inflation rate. These I bonds are also sold by the government and hence the risk is low and constantly yield a return of around 1 percent. People can buy these Ibonds in their nearest financial institution or the treasury office. Normally Ibonds come with a return of around 6 percent less the inflation rate and the rate is adjusted twice a year in the months of May and November and the bonds come with a maximum of 30 year lock in period and a minimum of 5 years lock in period. How ever the investors are allowed to withdraw within 5 years but with a penalty of 3 month interest and the savings put in these bonds are exempt from taxes over the years. These Ibonds come with a fixed rate and it is advised to buy these bonds at the month end and sell these bonds at the beginning of the month after the interest is calculated. The composite rate of these Ibonds are calculated by adding the fixed rate with twice of inflation rate and adding the figure with a multiple of inflation rate and the fixed rate offered by the bonds. These are also similar to the savings bonds and yield more or less the same return as that of these bonds and have the same benefits and limitations as these bonds. The benefits of these bonds include the tax exemption, safety, assured return, low risk, hedging against inflation, and the support of the government. Some of the limitations of the Ibonds include unattractive investment due to the low yield, lock in period, time value of money, interest rate etc. The bond market totally yields less when compared to other investment venues making it the most un attractive source of investment over the years but also the bond market has its own set of customers and investors and has been performing well over the years. The main investors in the I bonds include the senior citizens and pensioners and mutual fund companies also invest in Ibonds as a means of portfolio management to invest in various segments including bonds, derivatives, commodities, and equities etc.