I Bond’s Variable Interest Rate Will Rise To 2.76% On November 1

Summary

  • This variable rate will be the highest for an I Bond in 5 years.
  • All investors in I Bonds will get the new variable rate for six months, the timing depends on the month the I Bond was purchased.
  • One question remains: What rate will the Treasury set for the fixed rate on November 1?

Prediction: I Bonds are going to a hot investment from November 2016 to April 2017. They will have variable rate of 2.76% over six months. Even if you earned zero the next six months, that’s a return of at least 1.37% in one year, beating all super-safe investments.

Read my full analysis at SeekingAlpha.com

Also, I have updated my Tracking Inflation and I Bonds page with this new information.

And here are the new TIPS inflation indexes for November.

 

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5 Responses to I Bond’s Variable Interest Rate Will Rise To 2.76% On November 1

  1. Joseph Keenan says:

    Should I buy my Ibonds before Nov.1? Thanks.

  2. tipswatch says:

    Joseph, I have already bought my 2016 allocation. The only risk in waiting is that the 0.1% fixed rate will drop to 0.0%. I think that is possible, but I am guessing the rate will hold at 0.1%. I will be writing more about that this week.

  3. joe says:

    did the fixed rate stay 0.1% or did it drop to 0%. Too bad I already but my allocation in the beginning of 2016.

  4. joe says:

    I realized I asked a stupid question because I know it would be November. Ended up being 0 because the 10 year TIPS is .1% real.

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