Series I covenants offer several advantages for investors, according to Ken Tumin, senior industry analyst at Lending Tree.
“They’re exempt from declare and local income tax, which gives them a little edge over certificates of deposit,” Tumin said. “And you don’t make to worry about the federal income tax until you either redeem them or until they mature at 30 years.”
“It seduces it very easy to hold them for an extended period of time,” he said.
Prior to the announcement, experts had predicted the I checks rate could fall below 4%.