|Series I Savings Bonds
Current iBond Rate = 1.64%
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May 2, 2016 Announcement: The Bureau of the Public Debt today announced1 earnings rates for Series I Savings Bonds and Series EE Savings Bonds, issued from May 2016 through October 2016.
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 composite (total for the next six months) 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 earnings rate combines a 0.10% fixed rate of return with the 0.16% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The CPI-U increased from 237.945 in September 2015 to 238.132 in March 2016, a six-month change +0.08%.
When the inflation rate is less than zero, the earnings rate will be less than the fixed rate but never less than zero.
==> Composite Rates for Older Series I Bonds
==> I Cover I Bonds in My Newsletter <==
|==> NEVER lose money with I Bonds:
The 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.For older i-bonds and what they will pay, see: I Bond Composite Rates (iBonds)
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.
Note 1: TreasuryDirect Press Releases at http://www.treasurydirect.gov/news/news.htm
Maximum purchase(per calendar year):
TreasuryDirect.gov > Products in Depth > I Savings Bonds
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