3 ms·

What is the “might be screwed if you purchase after May”? I understand what I bonds are and am considering, but am missing why the May cutoff?

• baobabKoodaa 4y ago
  This 8.5% calculated inflation rate is a temporary anomaly and the author expects it to drop significantly, so if you purchase after May you might get significantly lower interest on the bond.
  • js2 4y ago
    8.5% rate is based on locking in 7.12% for first six months (Nov 2021 - Apr 2022 rate) and 9.62% for second six months (May - Nov 2022 rate). You only "get screwed" depending upon how much the rate drops in future adjustments. I personally think this is an overblown concern given the absolute dollar amount is so tiny. We're talking about interest on $10K. It's just not that much, a few hundred dollars. https://tipswatch.com/2022/04/24/lets-handicap-the-i-bonds-fixed-rate-equation/ https://tipswatch.com/2022/04/24/lets-handicap-the-i-bonds-f...
    • baobabKoodaa 4y ago
      Sure. I just explained what the author's concern was. I'm not arguing in favor or against that concern.
      • js2 4y ago
        I'm in agreement with you. I was just trying to provide some additional color. :-)