BuffaloKyle Posted March 16, 2023 Share Posted March 16, 2023 I can't find the article I just read but it was predicting the next i bond rate in May to be 4.00% - 4.80%. That's not including the 0.40% fixed rate that gets added on if you bought an i bond during this current cycle. There was no additional fixed rate for the i bonds that I and a lot of people bought last May so hopefully the rate is more towards the high end of the prediction. I'm getting 4.25% interest right now with my high interest savings account so don't wanna be making less interest than that. + Vegas_Millennial and + Lucky 2 Link to comment Share on other sites More sharing options...
Beancounter Posted March 16, 2023 Share Posted March 16, 2023 Here’s a link to an interesting read talking about the upcoming fixed component of the I-bond rate. https://seekingalpha.com/article/4584640-i-bonds-long-term-buying-opportunity-coming I read another article projecting an increase in the fixed rate as well, although not as high as the link above projects. Prosperity to all. Link to comment Share on other sites More sharing options...
BuffaloKyle Posted March 16, 2023 Share Posted March 16, 2023 (edited) 5 minutes ago, Beancounter said: Here’s a link to an interesting read talking about the upcoming fixed component of the I-bond rate. https://seekingalpha.com/article/4584640-i-bonds-long-term-buying-opportunity-coming I read another article projecting an increase in the fixed rate as well, although not as high as the link above projects. Prosperity to all. That's the article I read! I didn't notice they are predicting the fixed rate to go up as well. Unfortunately I bought $10k worth of i bonds in January so I'm all tapped out until January 2024. I'll have to see what the fixed rate is come November 2023. Edited March 16, 2023 by BuffaloKyle Link to comment Share on other sites More sharing options...
Beancounter Posted March 16, 2023 Share Posted March 16, 2023 Toward the end of the article in the “Buy Now of Buy Later” section the author predicts a rise in the fixed component to be between .7 and .9%. The other article I read pegged the increase between .4 and .6%. We’ll have to wait and see until May 1st. Link to comment Share on other sites More sharing options...
Kevin Slater Posted March 16, 2023 Author Share Posted March 16, 2023 1 hour ago, Beancounter said: Here’s a link to an interesting read talking about the upcoming fixed component of the I-bond rate. https://seekingalpha.com/article/4584640-i-bonds-long-term-buying-opportunity-coming I read another article projecting an increase in the fixed rate as well, although not as high as the link above projects. Prosperity to all. Annoyingly, the article is behind a paywall (or at least I have to sign up or something). But I'll take the gist you guys provided. By late April we'll probably have a better idea of what the new rates may be (at least the variable component-- not sure if the fixed is a simple calculation), and can decide at that point whether to purchase before or after May 1. Kevin Slater Link to comment Share on other sites More sharing options...
BuffaloKyle Posted March 16, 2023 Share Posted March 16, 2023 2 minutes ago, Kevin Slater said: Annoyingly, the article is behind a paywall (or at least I have to sign up or something). But I'll take the gist you guys provided. By late April we'll probably have a better idea of what the new rates may be (at least the variable component-- not sure if the fixed is a simple calculation), and can decide at that point whether to purchase before or after May 1. Kevin Slater I can see it fine. I'm in incognito mode on google chrome browser. Link to comment Share on other sites More sharing options...
Beancounter Posted March 16, 2023 Share Posted March 16, 2023 That’s strange @Kevin Slater I’m don’t have any problem seeing it either. I’m viewing the article on my I-Pad. Wish I could help you out. Link to comment Share on other sites More sharing options...
jawjateck Posted March 17, 2023 Share Posted March 17, 2023 February CPI came out last week and was hotter than expected, so the article's variable interest rate calculation/estimate is low. My estimate is that the May rate will be 3.42% (variable) + 0.8% (fixed) = 4.22%. I'll have to re-visit this in May to assess my prediction. We will definitely know the variable interest rate when the March CPI is released in the second week of April. Link to comment Share on other sites More sharing options...
Kevin Slater Posted March 29, 2023 Author Share Posted March 29, 2023 Last year, they annoyingly sent 12 Ibonds totaling 5k for my refund. This year I received a single 5k bond. Improvement. Kevin Slater BuffaloKyle 1 Link to comment Share on other sites More sharing options...
jawjateck Posted April 12, 2023 Share Posted April 12, 2023 On 3/17/2023 at 2:38 PM, jawjateck said: February CPI came out last week and was hotter than expected, so the article's variable interest rate calculation/estimate is low. My estimate is that the May rate will be 3.42% (variable) + 0.8% (fixed) = 4.22%. I'll have to re-visit this in May to assess my prediction. We will definitely know the variable interest rate when the March CPI is released in the second week of April. March CPI is out, so we know the inflation adj rate for I bonds will be 3.39% beginning May 1. Darn it, I missed my estimate by 3 basis points. Haha. I do expect the bump up in the fixed component. Invest accordingly gentlemen. You can get the current 6.8+% for next two weeks and it will pay that for 6 months, then adjust down. Kevin Slater, + augustus, + Lucky and 1 other 4 Link to comment Share on other sites More sharing options...
Kevin Slater Posted April 12, 2023 Author Share Posted April 12, 2023 22 minutes ago, jawjateck said: March CPI is out, so we know the inflation adj rate for I bonds will be 3.39% beginning May 1. Darn it, I missed my estimate by 3 basis points. Haha. I do expect the bump up in the fixed component. Invest accordingly gentlemen. You can get the current 6.8+% for next two weeks and it will pay that for 6 months, then adjust down. However, if the fixed component does bump up, over the long haul a bond bought in May will be worth more than one bought in April, despite having a lower upfront nominal rate. Kevin Slater + augustus and Beancounter 1 1 Link to comment Share on other sites More sharing options...
BuffaloKyle Posted April 12, 2023 Share Posted April 12, 2023 I'll probably cash out the i bond that I bought last May sometime before the end of the year then. Can make more interest putting it all back into my high interest savings account. I'll still have the one I got this year with the 0.40% fixed rate going. Link to comment Share on other sites More sharing options...
handiacefailure Posted April 19, 2023 Share Posted April 19, 2023 Suze Orman's podcast on Thursday will be about Ibonds and if you should buy them this round. Her advice is usually pretty good on Ibonds and that's how I first learned about them and that I could also buy another $10K in my trust using my SSN since my trust doesn't have a fed ID Number. I usually buy $10K in January and then another $10K in May or June and did buy $10K in January but probably won't buy anymore. Something interesting about Ibonds is that Sheila Bair was on Suze's show a couple weeks ago (she used to be a high up in the treausry depoartment) and when suze asked her about Ibonds she said with no hesitation she wasn't buying them before May. Beancounter 1 Link to comment Share on other sites More sharing options...
Beancounter Posted April 27, 2023 Share Posted April 27, 2023 (edited) How To Buy I Bonds in April 2023 at 6.89% | Keil Financial Partners KEILFP.COM April 2023 I Bond interest rate is 6.89%! Buy US Series I Savings Bonds in April at 6.89% for 6 months. May 2023 I Bond Inflation Rate Projected at 3.38%! For those interested….this financial firm projects the I-bond rate to be 3.38%. We’ll know soon enough what the rate will be in a few days. Also, this particular website is very informative and easily understood for all levels of investors from novices to seasoned veterans. In the interest of full disclosure I’m not affiliated with this firm. Dumb luck and a Google search landed me there. Prosperity to all. Edited April 27, 2023 by Beancounter Link to comment Share on other sites More sharing options...
Jim_n_NYC Posted April 27, 2023 Share Posted April 27, 2023 3 hours ago, Beancounter said: How To Buy I Bonds in April 2023 at 6.89% | Keil Financial Partners KEILFP.COM April 2023 I Bond interest rate is 6.89%! Buy US Series I Savings Bonds in April at 6.89% for 6 months. May 2023 I Bond Inflation Rate Projected at 3.38%! For those interested….this financial firm projects the I-bond rate to be 3.38%. We’ll know soon enough what the rate will be in a few days. Also, this particular website is very informative and easily understood for all levels of investors from novices to seasoned veterans. In the interest of full disclosure I’m not affiliated with this firm. Dumb luck and a Google search landed me there. Prosperity to all. It's interesting...we're in the part of the cycle where inflation is coming down (and so, then, is the I-bond rates) but it's not low enough for the Fed to bring down the funds rate and possibly even raise it further. Even if they freeze it where it is for a while, I'm getting 4.79% on some of my money markets (as of this morning's email which said they are raising the rate) which is better than 3.38% (or possibly 3.78 with the fixed .4%) that it might be on Monday. I didn't get in on the fixed rate, so I don't have to think about it...if the rate does drop to 3.38% I'll sell my bonds once the 3 month grace period is over (since I'm less than 5 years.) Link to comment Share on other sites More sharing options...
BuffaloKyle Posted April 27, 2023 Share Posted April 27, 2023 31 minutes ago, Jim_n_NYC said: I didn't get in on the fixed rate, so I don't have to think about it...if the rate does drop to 3.38% I'll sell my bonds once the 3 month grace period is over (since I'm less than 5 years.) Yeah I'm gonna sell the one I got last summer once we are 3 months into the new interest rate period as well and put it into a CD. Link to comment Share on other sites More sharing options...
jawjateck Posted April 28, 2023 Share Posted April 28, 2023 On 3/17/2023 at 11:38 AM, jawjateck said: February CPI came out last week and was hotter than expected, so the article's variable interest rate calculation/estimate is low. My estimate is that the May rate will be 3.42% (variable) + 0.8% (fixed) = 4.22%. I'll have to re-visit this in May to assess my prediction. We will definitely know the variable interest rate when the March CPI is released in the second week of April. I underestimated by 8 basis points.....dang it! Effective Monday......4.3%, including 0.9% fixed component. Beancounter and Kevin Slater 2 Link to comment Share on other sites More sharing options...
Beancounter Posted April 28, 2023 Share Posted April 28, 2023 I bonds interest rates — TreasuryDirect WWW.TREASURYDIRECT.GOV Here’s a link to the May - Nov 2023 rate. Kevin Slater 1 Link to comment Share on other sites More sharing options...
Kevin Slater Posted April 28, 2023 Author Share Posted April 28, 2023 So over the long haul, these new bonds will pay better than the previous offering. One play would be to keep your funds in a high yield money market fund (currently earning more than 4.3%) until mid-October, then purchase these new bonds to lock in the nice fixed rate and getting interest from the first of the month. Kevin Slater Link to comment Share on other sites More sharing options...
BuffaloKyle Posted April 29, 2023 Share Posted April 29, 2023 (edited) 2 hours ago, Kevin Slater said: So over the long haul, these new bonds will pay better than the previous offering. One play would be to keep your funds in a high yield money market fund (currently earning more than 4.3%) until mid-October, then purchase these new bonds to lock in the nice fixed rate and getting interest from the first of the month. Kevin Slater But I already spent $10,000 on an i bond in January! 😭 Dang that 0.9% fixed rate would have been nice. It hasn't been that high since November 2007. Now I gotta wait and see what this November will bring. Edited April 29, 2023 by BuffaloKyle Link to comment Share on other sites More sharing options...
Kevin Slater Posted April 29, 2023 Author Share Posted April 29, 2023 3 hours ago, BuffaloKyle said: But I already spent $10,000 on an i bond in January! 😭 Dang that 0.9% fixed rate would have been nice. It hasn't been that high since November 2007. Now I gotta wait and see what this November will bring. That's why we recommended 5000 & 5000! Kevin Slater BuffaloKyle and handiacefailure 1 1 Link to comment Share on other sites More sharing options...
BuffaloKyle Posted May 3, 2023 Share Posted May 3, 2023 Just saw on the treasury direct site: The Virtual Keyboard will be removed the week of May 7th to improve the customer experience. Yay! I hate entering my password with that thing! I read awhile back too but didn't post on here they made it easier to change your banking information as well. Jim_n_NYC and Kevin Slater 2 Link to comment Share on other sites More sharing options...
Jim_n_NYC Posted May 3, 2023 Share Posted May 3, 2023 After seeing that the Fed raised rates by 0.25% today, I went to Fidelity to check the new issue Treasuries rates. I've been cycling thru 3 month bills, but there aren't any listed yet, but the 2 month bills show a 5.09% rate. That's the first time I've seen them over 5% for the 2 months. Link to comment Share on other sites More sharing options...
Kevin Slater Posted May 3, 2023 Author Share Posted May 3, 2023 16 minutes ago, BuffaloKyle said: Just saw on the treasury direct site: The Virtual Keyboard will be removed the week of May 7th to improve the customer experience. Yay! I hate entering my password with that thing! I read awhile back too but didn't post on here they made it easier to change your banking information as well. It was also really stoopid because they required your password to have at least one uppercase and one lowercase letter, then the virtual keyboard didn't make a distinction. Kevin Slater handiacefailure and BuffaloKyle 1 1 Link to comment Share on other sites More sharing options...
mike carey Posted May 3, 2023 Share Posted May 3, 2023 2 hours ago, Kevin Slater said: It was also really stoopid because they required your password to have at least one uppercase and one lowercase letter, then the virtual keyboard didn't make a distinction. Kevin Slater Who says Catch 22 is only a work of fiction. Link to comment Share on other sites More sharing options...
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