I Bond Rates

The big news as of late is the new I bond rates. With the current fixed rate of 1.2%, I bonds bought between now and the end of the October will pay 4.8% for the first 6 months, and then 6.92%(!) for the next 6 months. The question, then, for those of you considering buying I bonds, is whether to buy before the end of October or before the end of November.

If you buy before the end of this October, you’ll be guaranteed the excellent return described above. If you wait until November, you might benefit from an increase in the fixed rate component of the I bond. The trade off to waiting is that you will no longer be able to enjoy the older 4.8% rates, and instead are betting on the inflation in the next 6 month period.

For more information on how I bond rates are determined and good discussion on whether you should buy now or wait, you may want to check out this thread.

Information on I bonds and purchasing them is available at Treasury Direct.