The Impact of I Bond Interest Rate Drop to 4.3% on Investments.
TL;DR Summary
The US Treasury has announced that the interest rate for Series I Savings Bonds will fall to 4.3% from May 1, down from the 6.89% paid out over the last six months. The bonds, which have helped investors keep pace with inflation since their introduction in 1998, have a fixed rate and an inflation rate that changes every six months. The fixed rate has been raised from 0.40% to 0.90%, but the semiannual inflation rate has been dropped to 1.69%, resulting in the lower combined interest rate. However, those who buy I bonds now will lock in a 0.90% fixed rate, the highest it's been since 2007.
- Interest Rate for Series I Savings Bonds Falls to 4.3%: Here's What it Means Yahoo Finance
- Return on I Bonds Drops to 4.3%, but They May Now Be a Better Long-Term Investment The Wall Street Journal
- I-bonds falling to 4.3% sounds bad, but a 0.9% fixed rate means you can trade up MarketWatch
- If You're Going to Own Bonds in Retirement, These Are the Ones I'd Recommend The Motley Fool
- I Bonds Are Down, But Not Out Morningstar
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