The I-Series Savings bond interest rate is a combination of a fixed rate and the inflation rate.
https://www.treasurydirect.gov/indiv/research/indepth/ibonds…
The composite rate for I bonds issued from May 2022 through October 2022 is 9.62 percent. This rate applies for the first six months you own the bond. The rates are re-set every 6 months.
The fixed-rate component is currently zero — but it has been 3 percent or higher in the past. The yield on the I-Bonds I bought in September 2001 is 12.76% for the next 6 months.
https://www.nytimes.com/2022/05/03/business/inflation-bonds-…
Wendy
5 Likes
The fixed-rate component is currently zero — but it has been 3 percent or higher in the past. The yield on the I-Bonds I bought in September 2001 is 12.76% for the next 6 months. \
Ah, those were the days. I have some of those, too, but I got in trouble with my parents for not alerting them to it. That was back in 2001, and the fixed rate hasn’t been above 1% since 2008. Mostly it’s been meaningless: between 0% and 0.50%. I’ve never figured out how they set that rate, but it hasn’t been good in over a decade.
Of course staying even with inflation in this environment is somewhat of a win.
https://www.treasurydirect.gov/indiv/research/indepth/ibonds…
1 Like