- At the May 1 reset, the I Bond’s variable rate will fall from 2.76% to 1.96%.
- We don’t know yet what the new fixed rate will be. Will it rise to 0.1%? Still possible.
- Should you buy I Bonds before May 1 to get the higher variable rate? Or hold out for the higher fixed rate? Tough call.
This decline in the variable rate sets up an interesting decision for I Bond investors: Buy before May 1 to get the 2.76% variable rate for six months, or wait until May 1 to see if the I Bond’s fixed rate – currently set at 0.0% – will rise to 0.1% (or higher).
Also, I have updated my Tracking Inflation and I Bonds page with these new numbers.
And here are the May CPI indexes for TIPS.