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Find out how the I bonds current rate of 3.11% impacts returns for both new and current investors in today’s inflation environment.
I Bonds issued back in 2021 and most of 2022, for example, had a fixed rate of 0%. By contrast, I Bonds issued from May 2000 through October 2000 have a fixed rate of 3.6% that remains the same ...
The rate on the popular inflation-protected I bonds slipped to 6.89% through April 2023 from 9.62%.
The I bond fixed rate in November 2021 and May 2022 — when rates were soaring — had a 0% fixed rate. The fixed rate increased last November to 0.4% for those who purchased the bonds through April.
The Fed cut short term rates by a half of a percentage point on Sept. 18, following a series of 11 rate hikes that kicked off in March 2022 and ended in July 2023.
In a truth that is quite counter-intuitive, investors who buy I Bonds at the new 6.89% rate may, after four years, come out ahead of investors who locked in the 9.62% rate that expired last month.