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US Treasury Series I Savings Bonds Inflation Rate Earnings (Nov 2023 - April 2024)

6,455 4,172 November 1, 2023 at 06:49 AM in Finance
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5.27% Interest (Annualized for 6 Months)
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Promoted 11-03-2023 by slickdewmaster | Staff at 09:09 AM View Original Post
U.S. Treasury Direct is currently offering 5.27% Interest Rate (Annualized for 6 Months) in combined Fixed + Inflation Rate Earnings valid on newly issued Series I Savings Bonds purchased from November 2023 through April 2024. Limit of $10,000/year per person.

Thanks to Community Member theimage13 for posting this offer.

Note: The rate includes Fixed Rate of 1.3% and Variable Rate of 3.94%. The Fixed Rate is valid for as long as you hold the bond (up to 30 years if you hold until maturity). The Fixed Rate is only valid for bonds issued from November 2023 through April 2024. Series I bonds issued before November 2023 are subject to the fixed rate at their issue date (see historical rates here) + the 3.94% Variable Rate during their corresponding 6-month period (6-month period will vary by issue date). Scroll down on this page to "An example" for combined rate calculation.

About this offer:
  • How do I buy a Series I bond?
  • What is a Series I bond? (source)
    • "A savings bond that earns interest based on combining a fixed rate and an inflation rate."
    • You may use Series I bonds to:
      • Save in a low-risk product that helps protect your savings from inflation
      • Supplement your retirement income
      • Give as a gift
      • Pay for education
      • Click here for more information about Series I Bonds
  • What interest does a Series I bond earn? (source)
    • A combination of a fixed rate that stays the same for the life of the bond and an inflation rate that is set twice a year.
    • An I bond earns interest monthly from the first day of the month in the issue date. The interest accrues (is added to the bond) until the bond reaches 30 years or you cash the bond, whichever comes first.
    • The interest is compounded semiannually. Every six months from the bond's issue date, interest the bond earned in the six previous months is added to the bond's principal value, creating a new principal value. Interest is then earned on the new principal.
    • The composite rate for I bonds issued from November 2023 through April 2024 is 5.27 percent. This rate applies for the first six months you own the bond.
  • When can I cash my I bonds?
    • After they are 12 months old.
    • If you cash an I bond before it is five years old, you will lose the last three months of interest.
    • I bonds earn interest for 30 years if you don't cash the bonds before they mature.
    • If you've been affected by a disaster, special provisions may apply.
US Treasury Series I Savings Bonds Inflation Rate Earnings (November '23 - April '24) 5.27% combined rate, including 1.3% fixed rate
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Original Post

Edited November 2, 2023 at 10:05 AM by slow12s | Staff
Welcome back to Series I bonds, everyone!

I know this rate isn't as flashy as the old >9% one from a little while back, but there's a big difference: this one has a fixed rate of 1.3%, whereas that last super high one had a fixed rate of 0%. What does that mean? That means that whatever the inflation rate is that gets set for your bonds in the future, you'll get that PLUS 1.3%. If you bought during those higher rates, you'll get the inflation rate plus...nothing. These bonds are made up of two rates: fixed and inflation (referred to together as the combined rate).

But my HYSA has a higher interest rate than this!

Yes, but these are exempt from state taxes. Your HYSA isn't. So unless your HYSA is WAY higher than this, these are probably going to leave you with more money.

https://treasurydirect.gov/saving...est-rates/

Previous thread with tons of information and answers: https://slickdeals.net/f/15758386-us-treasury-series-i-savings-bonds-inflation-rate-earnings-may-october-22-9-62-interest-annualized-for-6-months-limit-10k-year-per-person
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Better off investing in something like a one year t bill for 5.43%. At least you won't have to be concerned about inflation staying hot after the first 6 months, as the next 6 months = ? Plus if you cash out of the I bond before 5 years you have to give up 3 months interest, and keep in mind you must hold it this bond for at least one year after purchase. You probably missed the boat already for the peak of these I bonds. As always, consult with your professional financial advisor, and don't just rely on this dope (myself) trolling for a slickdeal on this site! 🤪

This below is a good read for info on I bonds....

https://www.investopedia.com/want...20interest
·
Fixed rate is gonna have to be higher to be more competitive with current T-bills and the other advantages they have over Series I
(no 1-year lock up, no 3-month penalty, etc)

Sorry but Series I Bonds, you are old news -- you had your time but now it's over.
·
Treasuries are not taxed at the state level. So you need to subtract your effective state tax rate from the CD rate.
·

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Joined Jul 2005
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> bubble2 300 Posts
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Unawino
11-09-2023 at 07:14 AM.
11-09-2023 at 07:14 AM.
Quote from ChickenStabber :
Just to help people understand the bond wont earn interest for the first 3 months. So you may lose the 3 months of the better rate...
My understanding is that you lose the last 3 months of interest, not the first. They do this by crediting interest to your bond with a 3 month delay, which makes it appear as though you don't earn interest for the first 3 months.
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ChickenStabber
11-09-2023 at 12:29 PM.
11-09-2023 at 12:29 PM.
Quote from Unawino :
My understanding is that you lose the last 3 months of interest, not the first. They do this by crediting interest to your bond with a 3 month delay, which makes it appear as though you don't earn interest for the first 3 months.
Oh well when I just cashed out one of mine it appeared to do the first 3 months. I am always able to be wrong though Wink
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saintsfan834
11-10-2023 at 10:05 AM.
11-10-2023 at 10:05 AM.
Quote from jmhulet :
The only benefit I see to I-bonds vs 6 month treasuries is that the interest on I bonds is tax free if you use it to pay for tuition. No other treasury bill or bond has that benefit. Other than that, they are kind of a has been story.
And the 1.3% guaranteed floor. Before Covid (and related financial impacts), may would have liked a guaranteed 1.3%. Depends on what long-term goal of those funds are.
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wisedog
11-11-2023 at 06:13 PM.
11-11-2023 at 06:13 PM.
Quote from norcal007 :
I just loaded up on Treasuries this morning online with Schwab. I did 2 years and did not want to ride the up/down of the Dow. Like the old line for the tv marketer of ovens "set it and forget it".
which etf did you buy?
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RedElmo
11-11-2023 at 07:53 PM.
11-11-2023 at 07:53 PM.
Quote from ThriftyHaddock3083 :
Series I bonds have two components: an inflation component which adjusts every six months, and a fixed component which never changes. Your existing bonds will, eventually, receive the same inflation rate as this one but it will never receive the 1.3% fixed rate.

Thanks. Now I don't know what the fixed rate component of my existing bonds are.
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