I Bond Rate May 2017

The new rate for newly purchased I Bonds is now 1.96%. This includes a 0.0% fixed rate and a 0.98% semi-annual inflation-linked rate.

The CPI-U increased from September's value of 241.428 to March's value of 243.801 (0.98%).

Previously issued bonds will see their variable rate adjust on the semi-annual anniversary of their issue date.

The rate for a new I Bond purchased May - October 2016 is 0.26%. The CPI-U increase from 237.945 to 238.132 represents a semi-annual increase of 0.08%. The fixed rate for a new bond is 0.10%.

May I Bond rate 0.0%

The semi-annual CPI-U rate dropped from 238.031 to 236.119, resulting in a negative variable rate for this period. The resulting variable rate will be 0.00 since bonds can not lose value. The fixed rate was announced at 0.00% again, meaning a new I bond purchased May to October has an initial rate of 0.00%.

November I Bond Rate is 1.38%

The November I Bond rate has been released with a 1.18% inflation-linked rate and a fixed rate of 0.20%. The new composite rate of 1.38% is valid for new bonds purchased between November and April 2014.

The return of a non-zero fixed rate is welcome news after 6 periods of 0%.

November 2013 I Bond Rate Prediction

The CPI-U numbers have finally been released after the delay caused by the government shutdown and we can begin to speculate on the next I-Bond Rate.

September's CPI-U value of 234.149 shows an increase over March's value of 232.773, or 0.59%. The resulting semi-annual inflation component of the November composite rate will be 1.18%, which is the same as it is now.

If we assume the fixed rate portion is not increased again, the resulting composite rate for a new I Bond in November will be 1.18% again.

Theoretical Fixed Rate	Composite Rate
0.00%	1.18%
0.10%	1.28%
0.20%	1.38%
0.30%	1.48%
0.40%	1.58%
0.50%	1.68%
0.60%	1.78%
0.70%	1.88%
0.80%	1.98%
0.90%	2.09%
1.00%	2.19%
1.10%	2.29%
1.20%	2.39%
1.30%	2.49%
1.40%	2.59%

May 2013 I Bond Rate

The CPI-U value increased from September's value of 231.407 to a value of 232.773 in March 2013. The resulting 0.59% semi-annual increase translates to a 1.18% CPI-U-linked rate for the May I Bond. The fixed rate of the newly issued bonds remains 0% for this period of May through November. The resulting composite rate is therefore 1.18% for a newly purchased I Bond.

I Bond Rate for November 2012 - April 2013

As expected, the I bond rate for the period of November 2012 through April 2013 will have a composite rate of 1.76%. The new composite rate reflects the 0.88% increase in semi-annual inflation as mesaured by the CPI-U index and the new fixed rate, which remained at 0%.

As always, the 1.76% rate is available now for newly purchased bonds while the 0.88% CPI-U change will affect currently issued bonds on the 6-month anniversary of the bond's issue date.

Source http://www.treasurydirect.gov/news/pressroom/pressroom_comeeandi1112.htm

What will the next I Bond rate be? November 2012

The CPI-U value increased from March's value of 229.392 to September's value of 231.407, resulting in a semi-annual adjustment of 0.88%. Since we now know the inflation-linked rate of the I Bond rate for November, we can calculate the possible new rates. The fixed rate portion of the new rate will not be known until November 1.

CPI-I values for March - September

March	April	May	June	July	Aug.	Sept.
229.392	230.085	229.815	229.478	229.104	230.379	231.407

Possible November I Bond rates

Theoretical Fixed Rate	Composite Rate
0.00%	1.76%
0.10%	1.86%
0.20%	1.96%
0.30%	2.06%
0.40%	2.16%
0.50%	2.26%
0.60%	2.37%
0.70%	2.47%
0.80%	2.57%
0.90%	2.67%
1.00%	2.77%
1.10%	2.87%
1.20%	2.97%
1.30%	3.07%
1.40%	3.17%

Since the fixed rate has remained at 0% for 2 years now, I strongly suspect it will remain there, resulting in a 1.76% composite rate for new I bonds sold in November. Since the fixed rate can't decrease, there is no benefit to buying I Bonds now or after the November 1 rate change.

May - October 2012 I Bond Rate

As expected, the new I bond rate for May 2012 is a composite rate of 2.20%.

The composite rate reflects the 1.1% in CPI-U for the September-March period and a fixed rate of 0.0%. The fixed rate has now been 0% for the past 2 years.

As always, the 2.20% rate is available now for newly purchased bonds while the 1.1% CPI-U change will affect currently issued bonds on the 6-month anniversary of the bond's issue date.

Source: http://www.treasurydirect.gov/news/pressroom/pressroom_comeeandi0512.htm

View: May 2012 Current I Bond Rate

May 2012 I Bond rate

What will the next I Bond rate be? Now that we have the 6 month change in the CPI-U for September to March, we know what the inflation-linked rate will be in May 2012. We will now know the fixed rate of the new bonds until the May announcement, but we can calculate what the composite rate may be based on different values for the fixed rate.

The CPI-U increased by 1.1% for this semi-annual period. The fixed rate is currently set at 0%, where it has been for the past 3 consecutive periods. If this fixed rate holds, we can see a May I Bond rate of 2.2%.

Theoretical Fixed Rate	Composite Rate
0.00%	2.20%
0.10%	2.30%
0.20%	2.40%
0.30%	2.50%
0.40%	2.60%
0.50%	2.71%
0.60%	2.81%
0.70%	2.91%
0.80%	3.01%
0.90%	3.11%
1.00%	3.21%
1.10%	3.31%
1.20%	3.41%
1.30%	3.51%
1.40%	3.61%

 

It seems likely the fixed rate will continue to stay at 0%, which would result in a 2.2% I Bond for the first 6 months. Since the current composite rate is 3.06% and it seems unlikely the fixed rate will improve, there is little reason to wait until May to purchase I Bonds.

CPI-U Update for May I Bond Rate

The March CPI-U value has been released, meaning we can now calculate the inflation-linked rate of the May I Bond. With a CPI-U increase from 226.889 to 229.392, the semi-annual inflation results in a 1.1% inflation-linked rate for the May I Bond.

 

Sept.	Oct.	Nov.	Dec.	Jan.	Feb.	Mar.
226.889	226.421	226.230	225.672	226.665	227.663	229.392

October and November CPI-U

The CPI-U values for October and November show a slight deflationary period since the last CPI-U value for the November I Bond was released. The CPI-U value for October fell from September’s value of 226.889 to 226.421. The value fell again from October’s value to the November value of 226.230. It is far too early to tell what the value of the May I Bond will be, but with deflation or low inflation, the variable rate is sure to be low again.

 

Sept.	Oct.	Nov.	Dec.	Jan.	Feb.	Mar.
226.889	226.421	226.230

November 2011 - May 2012 I Bond Rate

The rate for a newly purchased I Bond for November 2011 through April 2012 is 3.06%.

This rate includes the CPI-U change from March through September, which increased 1.53%. The newly announced fixed rate is 0.00%. This is the same fixed rate as the previous 6 months. The resulting composite rate for a newly purchased rate is 3.06%.

http://treasurydirect.gov/news/pressroom/pressroom_comeeandi1111.htm

November 2011 I Bond rate

Now that the CPI-U values for March through September have been released, we can determine what the range of possible rates will be for the November I Bond.

The CPI-U increase from 223.467 to 226.889 results in an inflation-linked rate of 1.53%. Buying an I Bond in October (before the rate change) would result in 6 months of the current 4.60% composite rate followed by 6 months of the new composite rate of 3.06%.

The new November composite rate cannot be determined exactly since the fixed rate is not known until November. We can determine the possible range of composite rates based on the inflation-linked rate of 1.53% and calculating for different values of the new fixed rate. If you are debating whether or not to buy now or in November, the current fixed rate of 0% does not lend itself to long-term investing while the 4.60% composite rate is more attractive for shorter-term investing. That said, it doesn’t seem likely the fixed rate will rise above 0% in November, either.

Theoretical Fixed Rate	Composite Rate
0.00%	3.06%
0.10%	3.16%
0.20%	3.26%
0.30%	3.36%
0.40%	3.47%
0.50%	3.57%
0.60%	3.67%
0.70%	3.77%
0.80%	3.87%
0.90%	3.97%
1.00%	4.08%
1.10%	4.18%
1.20%	4.28%
1.30%	4.38%
1.40%	4.48%

Since the current 0% fixed rate still results in a competitive 3.06% composite rate for a new I Bond, I believe the fixed rate will remain at 0% in November. The official release of the new rate will be on Tuesday, November 1, 2011.

September CPI-U Value

The CPI-U value for September rose to 226.889. The September value also completes the semiannual period used in the November rate change. Based on the March to September change in CPI-U, the inflation-linked rate for the next semiannual rate change will be 1.53%.

March	April	May	June	July	Aug.	Sept.
223.467	224.906	225.964	225.722	225.922	226.545	226.889

August CPI-U Increase

The CPI-U value for August increased to 226.545. The August value represents a 1.38% increase since March’s value of 223.467. With one month remaining before the November I Bond inflation-linked rate is known, it seems inflation is under control. With no increase in September and a fixed rate on 0%, an I Bond would offer a 2.76% composite rate. The full range of possible rates will be known in mid-October.

 

March	April	May	June	July	Aug.	Sept.
223.467	224.906	225.964	225.722	225.922	226.545

June & July CPI-U Increases

The CPI-U recovered some ground lost in June by climbing to 225.922 in July. The July value is still lower than the May value, but is higher than the March value, which is what the next I Bond rate will be based on. The March to July change in CPI-U is 1.1%. Given no increase in August and September and a continued 0% fixed rate, a new I Bond composite rate would translate to 2.2%. The rate will not be known until all the semi-annual CPI-U values are known and the new fixed rate is announced November 1.

 

March	April	May	June	July	Aug.	Sept.
223.467	224.906	225.964	225.722	225.922

End of Paper Bonds from Institutions

The US Treasury announced today that paper savings bonds will no longer be sold at financial institutions beginning January 1, 2012. Although paper bonds will no longer be available through institutions, they will still be available when purchased using your tax refund or as a replacement for reissued, lost, stolen, or destroyed paper bonds.

The move to cut paper bonds is said to save over $70 million in the first five years. All bond purchases from consumers will now be through TreasuryDirect.

There is no indication how this change will impact the current purchasing limit of $5,000 electronic and $5,000 paper bonds per year.

Treasury to End Over-the-Counter Sales of Paper U.S. Savings Bonds; Action will save $70 million over first five years

Banks will no longer sell Savings Bonds

May CPI-U

The May CPI-U value rose to 225.964. The November I Bond rate will be based on the change from the March to September rate.

March	April	May	June	July	Aug.	Sept.
223.467	224.906	225.964

CPI-U.info: CPI-U value for May 2011

May 2011 I Bond Rate Released

The I Bond Rate for May 2011 will be 4.60%. The new composite rate includes the previously known 2.60% CPI-U change and the newly announced 0% fixed rate.

Fixed Rate: 0.00%
CPI-U Rate: 2.60%
Variable Rate: 4.60%
Composite Rate: 4.60%

TreasuryDirect Press Release: http://www.treasurydirect.gov/news/pressroom/pressroom_comeeandi0511.htm