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"US Treasury's I Series Savings Bonds... starting May 1, they will be yielding 3.5%..." Stas,Are you sure about that 3.5% rate? Here's from the Treasury Direst website. Q: What interest will I get if I buy an I bond now?A: The composite rate for I bonds issued from November 2020 through April 2021 is 1.68 percent. This rate applies for the first six months you own the bond.Q: How does Treasury figure the I bond interest rate?A: The interest on I bonds is a combination of a fixed rate, and an inflation rate.Yeah, inflation --in the layman's sense of 'price increases'-- is on the rise. But due to shenanigans at the Bureau of Economic Propaganda (aka, the BLS), the CPI won't reflect what Main Street is experiencing. Instead, what will be reported will be a much lower number that will be consistent with prior, only slightly trending upward numbers. The other half of the composite rate is a fixed interest rate, which the Fed has pledged to keep low for the near future and couldn't raise in any case because our spendthrift gov't wouldn't be able to service its increasing debts, never mind also further trashing the $US and --hence-- the US economy. Therefore, my bet that the composite rate for I bonds issued in the May to Nov period will be about 1.75%, not twice that. Now, here's the other side of the discussion. Only $10k can be dumped into I bonds per year, and most of us are trying to park multiples of that while we wait for The Big Crash. MM funds, T-Bills, and such still have a positive nominal yield, but aren't worth fussing with because the yield is so low and aren't as convenient and easily accessible as a high-yield checking account at a credit union, some of which offer as much as 1.5% on the first $15k. Arindam
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