If you could, I need I bond help

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  • #82315 Reply

      I’m still learning… I bought 10K of ibonds 9-1-22 when the rate was 9.62%. Today , 8 1/2 months later, when I log in, it’s worth $10,400 and the “interest rate” says 6.48%. How did they calculate the $400 interest earned and why does it say 6.48% and not 9.62%.

      Also, how long do I keep earning 9.62%, for as long as I keep the money in there?

      Thanks in advance

      #82317 Reply

        The rate changes over time, the current prevailing rate is 6.48. The interest rate calculation is a bit tricky, I think it’s monthly with the rate changing every 6 months from when you opened it (so 9.62 for six months including September, then 6.48 from then until now, then minus the three month penalty until it’s 5 years old).

        #82318 Reply

          That’s the thing with bonds.

          That’s not a fixed annual rate. There are better options out there for longer term holdings, don’t just follow what everyone else is doing because it’s the hot topic.

          #82319 Reply

            I bonds were good the last 3 years for your cash holdings. Now it’s Money Market Fund and T bills. Remember, this is for short term cash holdings.

            #82320 Reply

              I bonds are a good place to keep part of ur EF or if ur building a cash warchest or “bucket” to draw up during retirement. the nice thing is they are guaranteed to stay with inflation. also with the new rate the fixed rate is 0.9% which is huge. it means as long as u hold the i bonds they will always be 1% of inflation. but for 1 to 3 year savings buckets MMF and CD’s are paying slightly better. and you could sell and re buy to get the 1% fixed rate. even though the yield is slightly lower it may make sense. just depends on how long you plan to hold them.

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