Inflation Report Sets I Bond’s New Variable Rate At 1.06%

Summary

  • U.S. Series I Savings Bonds purchased before May 1 will pay a composite interest rate of 2.22% for six months, and then 1.26% for six months.
  • I Bonds remain the world’s best inflation-protected investment, especially if you purchase them before May 1.
  • Gasoline prices sent the U.S. economy into deflation in March. Deflation looks like a trend that will continue for many months.

The March inflation report, just released by the U.S. Bureau of Labor Statistics, locks in the I Bond’s new inflation-adjusted variable rate at 1.06%, down from the current 2.02%.

The new inflation-adjusted rate will go into effect May 1, when the U.S. Treasury will also reset the I Bond’s fixed rate, which is currently 0.2%. That fixed rate is highly likely to drop to 0.0% on May 1.

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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1 Response to Inflation Report Sets I Bond’s New Variable Rate At 1.06%

  1. Lyle Coleman2 says:

    T, with the gubmint’s pouring Trillions into the economy, any idea when(if) we’ll see inflation, again?

    >

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