KirkLindstrom.com - Articles - iBonds:  Current Series-I Bond Interest Rates
iBonds:  Current Series-I Bond rates
Series I Savings Bonds
Current iBond Rates
Kirk
                Windsurfing at Coyote Point November 2009

Return to KirkLindstrom.com home page
 

 
November 3, 2014 Announcement:  The Bureau of the Public Debt today announced1 earnings rates for Series I Savings Bonds and Series EE Savings Bonds, issued from November 3, 2014 through April 30, 2015.

I bond fixed rates are determined each May 1 and November 1. Each fixed rate applies to all I-bonds issued in the six months following the rate determination.

The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate. The 1.48% earnings rate for I bonds bought from November 2014 through April 2015 applies for the first six months after the issue date.


The earnings rate combines a 0.00% fixed rate of return with the 1.48% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The CPI-U increased from 236.293 in March 2014 to 238.031 in September 2014, a six-month increase of 0.74%.

  • Fixed rate  = 0.00%
  • 6 month Inflation rate = 0.74%
  • Composite rate =[fixed rate + (2 x inflation rate) + (fixed rate x inflation rate)]
    [0.0000 + (2 x 0.0074) + ( 0.0000 x 0.0074)]= 0.0148 = 1.48%

==> Thus, the current I Bond Composite Earnings Rate is 1.48% with a fixed rate of 0.00%

==> Composite Rates for Older Series I Bonds

==> Top CD and Savings Account Rates: (Select your amount and account type to find the best rates) <==

Click for FREE sample of Kirk Lindstrom's                      Investment Letter

==> NEVER lose money with I BondsThe combined rate will never be less than 0. However, the combined rate can be lower than the fixed rate. If the inflation rate is negative (because we have deflation, not inflation), it can offset some of the fixed rate. If the inflation rate is so negative that it would take away more than the fixed rate, the 6-month combined rate stops at 0.00%.
More about Series I Bonds:
 
More about Series I Bonds:

When the inflation rate is less than zero, a bond's earnings rate is less than its fixed rate (but the earnings rate is never less than zero).
The fixed rate applies for the 30-year life of I bonds purchased during this six-month period.

Earnings rates for I bonds are set each May 1 and November 1. Interest accrues monthly and compounds semiannually. Bonds held less than five years are subject to a three-month interest penalty. I Bonds have an interest-bearing life of 30 years.

For older i-bonds and what they will pay, see:  I Bond Composite Rates (iBonds)



Note 1: TreasuryDirect Press Releases at http://www.treasurydirect.gov/news/news.htm

Minimum purchase:
  • $25 for a $25 I bond when purchased electronically via TreasuryDirect
Maximum purchase(per calendar year):
  • $10,000 total per social security number
Denominations:
  • Electronic bonds via TreasuryDirect: purchase to the penny from $25 to $10,000. For example, with electronic bonds, you could buy an I Bond for $50.23.
How do I buy an I Bond?   Electronic: Through your TreasuryDirect account

TreasuryDirect.gov > Products in Depth > I Savings Bonds

For more conservative investors who have no interest in individual stocks, I co-edit "The Retirement Advisor"  where our most aggressive model portfolio is slightly less aggressive then the "core conservative portfolio" in Kirk Lindstrom's Investment Letter."   For more explanation, see "Kirk's Two Investment Letters - Which is Best for You?"  


TOP of Page



KirkLindstrom.com

Home of "CORE & Explore®" investing.

Blog
FREE=> Investment Letter SAMPLE  <== FREE

KirkLindstrom.com

Disclaimer:  The information contained in this web site is not intended to constitute financial advice, and is not a recommendation or solicitation to buy, sell or hold any security. This blog is strictly informational and educational and is not to be construed as any kind of financial advice, investment advice or legal advice. Copyright © Kirk Lindstrom. Note: "CORE & Explore®" was coined by and is a registered trademark of Charles Schwab & Co., Inc.