Experts predict I-bond interest rates to drop below 4% in May.

The annual return on Series I bonds, an inflation-protected and nearly risk-free asset, is expected to fall below 4% in May based on the latest consumer price index data. The fixed portion of the rate may increase slightly, but the variable portion could drop to 3.38%. While the new rate may no longer be as attractive for short-term savings, it may still appeal to longer-term savers looking to preserve purchasing power. Investors can still lock in 6.89% annual returns for six months by purchasing I bonds before May.