No. of Recommendations: 2
According to

the fixed rate remained at 2%.

The inflation number is 0.28%, which when combined with the fixed rate using the formula

Composite rate = [Fixed rate + 2 x Inflation rate + (Inflation rate X Fixed rate)] X 100
Composite rate = [0.0200 + 2 x 0.0028 + (0.0028 X 0.0200)] X 100
Composite rate = [0.0200 + 0.0056 + 0.000056] X 100
Composite rate = [0.025656] X 100
Composite rate = 0.0257 X 100
Composite rate = 2.57%

If you have a surplus of I-bonds with a 2% fixed rate, cash them in before they start earning peanuts. It's simple to find bank accounts paying more than 2.57% (although they're not tax-deferred).
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.