3 ms·
> You'll then get the next rate which is most likely 3% for 6 months Which is less than the 3.9% you get from a 6M treasury right now. If i-bonds really only g
by dragontamer 4y ago
> You'll then get the next rate which is most likely 3% for 6 months
Which is less than the 3.9% you get from a 6M treasury right now. If i-bonds really only get 6% in the next rate, you've lost money compared to 6M or 1Y treasury bonds.
- adabyron 4y agoGood point. Though right now you also get the current 9.62% for 6 months so you come out ahead still with most likely an 8% return over 1 year. After November, it'll be interesting to see if I Bonds are worth buying anymore or if treasury bonds go down. It's also possible that in November they add something more than 0 to the fixed rate of the I Bond. Buying now though you unfortunately would not get that.
- medvezhenok 4y agoThe 3.9% you get from a 6M treasury is annualized (so only 1.95% in 6 months), and the 3% for 6 months (from I-bonds) is actually >6% annualized. So I-bonds will still beat the 6M treasury bond unless the rates on the latter keep going up.
- dragontamer 4y agoUggh, its always annoying trying to compare apples to apples. Thanks for annualizing (or in this case, 6Month-izing) the rates for an actual apples-to-apples comparison.
- nopzor 4y agogenerally interest rates are always annualized.