It’s now six months since April, which means it’s time again to partially predict the new I-Bond savings bond rates before the formal announcement until November 1st. Just in case we want to buy some beforehand and lock in some rates.
208.490/205.352 = 1.015281, or a semi-annual increase of 1.5281%.
Total rate = Unknown fixed rate + 2 x Semiannual inflation rate + (Semiannual inflation rate X Fixed rate)
If we assume a fixed rate of the current 1.3%, we get
Total rate = 0.013 + (2 x .015281) + (.013 x .015281) = 1.3% + 3.08%
Total rate = 4.38%
Overall, if you buy now in October and lock in your 1.3% fixed rate, you?ll get 3.74% for 6 months and then 4.38% for another 6 months. Not very appealing. Here to hoping the fixed rate jumps some…