ST Alpha - "You get the current rate for 6 months, then the next rate for 6 months, etc." (Reading a Post)

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In response to "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" by oblique

You get the current rate for 6 months, then the next rate for 6 months, etc.

Posted by Baruno (aka BaronWasteland) Apr 12 '22, 10:00

From the horse's mouth:

"For the first six months you own it, the Series I bond we sell from November 2021 through April 2022 earns interest at an annual rate of 7.12 percent. A new rate will be set every six months based on this bond's fixed rate (0.00 percent) and on inflation."

Responses:

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

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You get the current rate for 6 months, then the next rate for 6 months, etc.

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