In Surprise Move, Treasury Holds I Bond’s Fixed Rate At 0.5%

Summary

  • Yes, I didn’t see this coming.
  • Today’s decision is a gift to small-scale investors seeking inflation protection, and should be applauded.
  • If you already bought your full 2019 allocation of I Bonds before April 30, you still get the advantage of the higher composite rate for six months.

Combined with the new inflation-adjusted variable rate – based on U.S. inflation from September 2018 to March 2019 – these new I Bonds will earn a composite rate of 1.90% for six months, the Treasury announced today. This is a drop from the composite rate of 2.83% for I Bonds purchased from November 2018 to April 2019.

Read my full analysis on SeekingAlpha.com

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About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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