ST Alpha - "LIR: znu. What's your gut feeling on the i-bond rate in May? Should I wait to buy on the chance it goes up? -- nm" (Reading a Post)

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LIR: znu. What's your gut feeling on the i-bond rate in May? Should I wait to buy on the chance it goes up? -- nm

Posted by oblique (aka kkuphal) Apr 12 '22, 08:55

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Responses:

It's a formula that resets every six months based on inflation. The "main rate" of zero hasn't gone anywhere and is unlikely to. -- nm - spamlet Apr 12, 09:04 10
- Ah, so the return rate changes in May for new and *existing* i-bonds regardless. I'm not locking in a rate now for 6 months. -- nm - oblique Apr 12, 09:49 9
  - You get the current rate for 6 months, then the next rate for 6 months, etc. - Baruno Apr 12, 10:00 7
    - This is correct. You get six months at 7.12%, then six months at the next rate, which should be north of 9% if my calculations are right. -- (edited) - znufrii Apr 12, 10:01 6
      - 9.62% per other people who know this stuff. I was going to wait, but I just might max out for the year now. -- (link) - Baruno Apr 12, 10:05 5
        
        Thanks, was doing quick and dirty math based on monthly CPI, so figured I was undershooting it a little bit. -- nm - znufrii Apr 12, 10:56
        
        So, what’s the catch? How long you gotta hold or whatever? -- nm - Will Hunting Apr 12, 10:19 3
        
        Yes. You're required to hold for at least 1 year. -- nm - Baruno Apr 12, 10:29 2
        
        What’s the penalty otherwise? - Will Hunting Apr 12, 10:32 1
        
        Not sure it's even possible. You're locked in for 1 year. Between 1 and 5 years, you sacrifice 3 mo of interest. - Baruno Apr 12, 10:44
  - I believe that's the case. -- nm - spamlet Apr 12, 09:55

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