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Series I Bonds

All articles tagged with #series i bonds

finance2 years ago

"Series I Bond Rate Surges to 5.27%: A Strong Fixed Rate for Investors"

The new rate for Series I Bonds starting on Nov. 1 will be 5.27%, consisting of a 1.3% fixed rate and a 3.94% inflation rate. This is the highest fixed rate since 2007. Investors who purchased Series I Bonds during high inflation periods received a 0% fixed rate, while those buying now will receive the 1.3% fixed rate for as long as they hold the bond. There are purchase limits and cash-out restrictions, but strategies can be employed to maximize returns.

via MarketWatch|
#finance#fixed-rate#inflation-rate
finance2 years ago

"Treasury Department Sets 5.27% Rate for Series I Bonds in Next Six Months"

The U.S. Treasury Department has announced that Series I bonds will offer a 5.27% annual interest rate from November 1 to April 2024, up from the previous rate of 4.3%. These bonds, tied to inflation, provide investors with the opportunity to earn the fourth-highest I bond rate since 1998. The fixed portion of the rate remains the same for the life of the bond, while the variable rate adjusts every six months based on inflation. It is important to consider the limitations of I bonds, such as restricted access to funds for at least one year and potential penalties for early withdrawal.

via CNBC|
#finance#inflation#interest-rates
finance2 years ago

Experts Predict Potential Rise in Series I Bond Rates to Over 5%

Financial experts predict that the annual rate for newly purchased Series I bonds could rise above 5% in November, making it the fourth-highest yield since the bonds were introduced in 1998. The variable rate, which is adjusted every six months based on inflation, is expected to increase to 3.94% in November. The fixed rate, which is harder to predict, is anticipated to rise based on higher yields from 10-year Treasury inflation-protected securities (TIPS). Long-term investors in I bonds could be significantly impacted by the fixed rate increase.

via CNBC|
#finance#fixed-rate#inflation
personal-finance2 years ago

Uncovering the Forgotten Value of Series I Bonds

If you bought Series I bonds and forgot about them, you can log into your TreasuryDirect account to check your balance and calculate your cumulative interest rate. The current composite rate is 4.3%, but the upcoming rate will be announced by the Treasury. You have options: hold onto the bonds for long-term preservation of capital, cash them out and buy I-bonds with a fixed-rate component, or invest in other Treasury products like TIPS. Financial experts suggest considering the current rates and inflation protection when making a decision.

via MarketWatch|
#fixed-income-investing#inflation-protection#personal-finance
finance2 years ago

Bond Market Insights: Selling Series I Bonds and Choosing the Perfect Corporate Bond ETF

As inflation subsides, investors are questioning whether it's time to sell their Series I bonds. The interest rate on these bonds is based on inflation, and with the Federal Reserve working to stomp out inflation, the returns on I bonds depend on the Fed's success. Additionally, I bonds have time limits and penalties for early redemption. Investors may consider alternative low-risk investments or other government bonds like Treasurys, which offer higher rates and the potential for increased value. Ultimately, the future of I bond rates depends on the Fed's ability to control inflation.

via Bankrate.com|
#federal-reserve#finance#inflation
personal-finance2 years ago

Expert recommends Series I bonds for longer-term investors despite lower annual rate.

The U.S. Department of the Treasury has announced that Series I bonds will pay 4.3% annual interest through October, a drop from 6.89% in November amid falling inflation. The new variable rate is 3.38% and the fixed rate is 0.9%. While I bonds may still appeal to longer-term investors, the 4.3% annual rate may be less attractive to those with shorter-term goals. Experts say I bonds are now more of a "strategy investment" for those who want to know how much they're earning above inflation for the long run.

via CNBC|
#fixed-rate#inflation#personal-finance
finance2 years ago

Experts predict I-bond interest rates to drop below 4% in May.

The annual return on Series I bonds, an inflation-protected and nearly risk-free asset, is expected to fall below 4% in May based on the latest consumer price index data. The fixed portion of the rate may increase slightly, but the variable portion could drop to 3.38%. While the new rate may no longer be as attractive for short-term savings, it may still appeal to longer-term savers looking to preserve purchasing power. Investors can still lock in 6.89% annual returns for six months by purchasing I bonds before May.

via CNBC|
#finance#inflation#interest-rates