Comments on: Savings I-Bonds March 2010 CPI Update: 1.54% Variable Rate

By: iBonds

iBonds — Tue, 20 Apr 2010 02:26:46 +0000

WOW, 1.2% fixed rate May-Nov 2005 and Nov2007-May08. The people who are really happpy are those that bought i-bonds are those with the fixed rates during the Internet bloom and just before 9-11-2001. I wish i were yu. I bought the i-bond at 0.7% fixed and at 0.1% fixed.

By: Eric

Eric — Tue, 20 Apr 2010 02:17:35 +0000

Thanks for the reply Jonathan. I bought mine right at the end of April 2008 (I think that’s the same time you bought them?)

By: Jonathan

Jonathan — Tue, 20 Apr 2010 01:41:18 +0000

@Sergei – Read up at TreasuryDirect.gov. The rates only change every 6 months. Anyone who buys in April gets the same rate for 6 months. We are simply cheating a bit and predicting the future May change ahead of time.

“Fixed rates and semiannual inflation rates are combined to determine composite earnings rates. An I Bond’s composite earnings rate changes every six months after its issue date.”

@Eric – Yes, but remember the rate only changes every six months from your specific purchase month. It may not necessarily change in May. When it does, it will be 1.2% + 1.54%. (Might be closer to +1.55%.)

@Sean – I agree, changing banks is a huge hassle. Their idea of security focuses on themselves, not the customer.

By: Sean

Sean — Mon, 19 Apr 2010 21:23:52 +0000

I unloaded all my I bonds that I acquired in April 2008 this past January when they stopped paying ~6%. I doubt I will ever get back in to them, if for no other reason then the fact that I closed the bank account linked to my TreasuryDirect account, and changing that with TD is unnecessarily a HUGE hassle (notarized forms from banks, etc).

By: Eric

Eric — Mon, 19 Apr 2010 21:13:40 +0000

Thanks for the update Jon!

I always forget to check so your posts are good reminders.

If my fixed rate is 1.2%, do I just add that to 1.54% to get my interest rate for the next six months?

By: Sergei

Sergei — Mon, 19 Apr 2010 16:05:35 +0000

Thank you for the update on I-Savings bonds. Where can I find the information that if I buy I-Savings bonds before the end of April I will be guaranteed an variable interest rate of 3.06% for the next 6 months.
I thought that Treasury resets rates in May. So If I buy let’s say today they will reset my variable rate on the 1st of May not in 6 months (in October).