Mods: This is posted as a new deal (not a repost) with permission from SuperModerator landen118.
US government will be paying 9.62% on its I-bonds in combined Fixed + Inflation Rate Earnings valid on newly issued Series I Savings Bonds purchased 05/01/22-10/30/22.
I-bonds are currently paying 7.12% for purchases through the end of this month. This rate is in effect for six months, and will then "reset" to the rate to be set on May 1, anticipated to be 9.62%. In laymen’s terms: These are safe U.S. treasury securities which adjust their interest rate every 6 months based on the current inflation rate. If you own a bond before the end of April, you lock in 7.12% interest for the first six months and then will receive the new rate set on Saturday (anticipated to be 9.62% based on the data) for the following six months. This results in a 12 month yield of approximately 8.5%.
Friday, 04/29 (assuming an actual withdrawal date of 04/30) is the last day to lock in the current 7.12% six month rate, which will then adjust upward. This makes the next 24 hours a unique opportunity to obtain these guaranteed high rates for the next 12 months.
Source #1
Source #2 (with monthly data that the rate is based on)
Source #3
|
Quote :
A unique window of opportunity exists this month. By purchasing I-bonds in April, you can lock in the current 7.12% interest rate for the next six months. After that, you’ll receive the new rate of 9.6% for the six months that follow. Because the interest earned on I-bonds compounds every six months, your total return over the next 12 months will be 8.5%. |
Source: https://www.marketwatch
For further details on how I-bonds work, see the when the 7.12% rate was announced. There is plenty of discussion and information there on how I-bonds work. This is an opportunity to achieve a higher rate for a longer term.
https://www.treasurydir