No. of Recommendations: 1
So it looks like the October buyers (including me to some extent) of I-bonds may get 0% for 6 months, but what will the November buyers get?

The same thing, but they'll be a month behind.

When you purchase an I Bond, regardless of the month you buy it in, you receive the current combined annualized rate (fixed + inflation component) for 6 months. After that, you receive the next inflation adjustment, added to your fixed rate (which remains fixed for as long as you own the bond), for the following 6 months, and so on.

So the October buyers get 1% + 5.75% (approx) for Oct - Mar, and then they would (currently) get 0% for Apr - Sep. The November buyers get exactly the same, but for Nov - Apr followed by May - Oct. Clear?

Since the value of an I Bond can never go down, in this case -2% + 1% = 0%. Pitty the poor folks who have a 2% or higher fixed rate. They'll actually be losing more than those with the 1%'ers. (Yeah, I know, no solace whatsoever.)

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.