These bonds currently pay 9.6% and are backed by the U.S. government.
It's important to understand that these bonds reset their interest rate every six months based on inflation. So while inflation is high, you'll get paid a high interest rate. When inflation eventually tapers off, so will the interest you receive on these bonds.
Your money is locked up for one year. You cannot take it out. After that year, if you liquidate before five years, you lose three months of interest but still receive your principal back and all interest accumulated (minus the three months). After five years, there is no penalty.
You can purchase a maximum of $10,000 per person per year and another $5,000 if you use your tax refund to buy them.
The bonds are available only through TreasuryDirect.gov and cannot be held in a retirement account.
Government bonds are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.