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"For the first six months you own it, the Series I bond we sell from November 2021 through April 2022 earns interest at an annual rate of 7.12 percent. A new ra
by bigwavedave 5y ago
"For the first six months you own it, the Series I bond we sell from November 2021 through April 2022 earns interest at an annual rate of 7.12 percent. A new rate will be set every six months based on this bond's fixed rate (0.00 percent) and on inflation."
As someone who's never bought bonds before, how do I know the 7.12% won't change after the 6 months of the locked rate to the 0.00% and whatever pittance they decide to toss my way in an attempt to account for inflation?
Sincere question, I don't know anything about anything.
- criddell 5y ago7.12% is about as low as it's been: https://treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm#compositerate https://treasurydirect.gov/indiv/research/indepth/ibonds/res...
- medvezhenok 5y agoThat's not what that chart is saying. That's the coupon rate paid by a bond bought at that time (in the late 90s the bonds paid a real return of 3%, which when added to the current 7.12% inflation rate gives a nominal return of 10.12% for the next 6-months). The rate of those bonds was 3.5% just a month ago, and historically averages around 2%.