BuffaloKyle Posted November 3, 2023 Share Posted November 3, 2023 46 minutes ago, GlenDale said: Thanks. So the. 9.6% is not a constant for the life of the holding (6 month changes not withstanding)? No, it changes every six months. Link to comment Share on other sites More sharing options...
GlenDale Posted November 3, 2023 Share Posted November 3, 2023 4 hours ago, BuffaloKyle said: No, it changes every six months. Given, the variable changes but how does one determine the fixed rate? Link to comment Share on other sites More sharing options...
Jim_n_NYC Posted November 3, 2023 Share Posted November 3, 2023 6 hours ago, GlenDale said: Given, the variable changes but how does one determine the fixed rate? The fixed rate is what it is when you buy the bond until you sell it. Right now it's 1.3%, so for any bonds bought between now and end of April '24 that's what it will be and will remain 1.3% on those bonds until they are sold. Link to comment Share on other sites More sharing options...
BuffaloKyle Posted November 3, 2023 Share Posted November 3, 2023 16 hours ago, GlenDale said: Given, the variable changes but how does one determine the fixed rate? They don't have the formula for the fixed rate determination posted but it's something to do with inflation and interest rates long term. So now that this has been going on for awhile, inflation & high interest rates, that's why the fixed rate is going up now as well. Link to comment Share on other sites More sharing options...
GlenDale Posted November 3, 2023 Share Posted November 3, 2023 8 minutes ago, BuffaloKyle said: They don't have the formula for the fixed rate determination posted but it's something to do with inflation and interest rates long term. So now that this has been going on for awhile, inflation & high interest rates, that's why the fixed rate is going up now as well. Definitely difficult to keep straight but from a simple practical stand, if the best I’ll earn on these two bonds are less than 4% it was a bad investment choice considering the current state of CD rates. Today I opened a 25k cd at Forbright yielding 5.75% Link to comment Share on other sites More sharing options...
handiacefailure Posted November 13, 2023 Share Posted November 13, 2023 Suze Ormans podcast on Weds was pretty interesting. I already bought one for my individual account in Early January and held off for my trust account. If I do buy one for that accoutn I'm going to sell one that has the zero percent fixed rate at the beggining of next month and buy the new one the end of the month. Can't remember if it was addressed in this thread or not she metnioned is you earn interest for the whole month regardless of when you buy it and you lose out on the interest for the entire month you sell it in, so buy towards the end of the month and sell on the 2nd. Reason I am debating on buying one is she mentioned the fixed rate. I always thought you were guaranteed the fixed arte the life of the bond, and found out it isn't the case if there's deflation. Thinking of just taking the three month interest hit and buying another 28 day Tbill with it and continue to reinvest that. I live in a state with a high state tax rate so treasuries are nice being exempt from state tax + augustus 1 Link to comment Share on other sites More sharing options...
BuffaloKyle Posted December 28, 2023 Share Posted December 28, 2023 Just a reminder as @handiacefailure said above if you're buying an ibond next month wait until closer to the end of the month since you'll still earn interest for the whole month. Kevin Slater 1 Link to comment Share on other sites More sharing options...
BuffaloKyle Posted April 6 Share Posted April 6 Anyone find a prediction for what next month's I bond rate will be? I bought my 10k limit in January so I hope the fixed rate doesn't go way up. 😅 Link to comment Share on other sites More sharing options...
Kevin Slater Posted April 6 Author Share Posted April 6 16 hours ago, BuffaloKyle said: Anyone find a prediction for what next month's I bond rate will be? I bought my 10k limit in January so I hope the fixed rate doesn't go way up. 😅 ... cuz if I can't have it, I don't want anyone else to get it? Kevin Slater thomas and handiacefailure 2 Link to comment Share on other sites More sharing options...
BuffaloKyle Posted April 6 Share Posted April 6 32 minutes ago, Kevin Slater said: ... cuz if I can't have it, I don't want anyone else to get it? Kevin Slater Yup! 😇 thomas and Kevin Slater 2 Link to comment Share on other sites More sharing options...
Beancounter Posted April 10 Share Posted April 10 (edited) The link below provides an analysis of what the projected I-bond rate will be, both the fixed and variable rates. It’s a fairly long video (22-23 minutes) but it explains how the rate projections are arrived at. For those not wanting to watch the entire video this video projects the fixed rate to be 1.2% and the variable rate to be between 1.98% and 2.8% (I think). I’d have to rewatch the video to see what the upper-end variable rate would be. Prosperity to all. https://youtu.be/g1mVtOxYEHE?si=YU2ZvUViH9EN_UJ2 Edited April 10 by Beancounter Kevin Slater 1 Link to comment Share on other sites More sharing options...
Beancounter Posted April 10 Share Posted April 10 Looks like the new I-bond rate is 4.30% https://www.cnet.com/personal-finance/investing/i-bonds-rate-cools-down-while-long-term-value-increases/ Link to comment Share on other sites More sharing options...
BuffaloKyle Posted April 10 Share Posted April 10 2 hours ago, Beancounter said: Looks like the new I-bond rate is 4.30% https://www.cnet.com/personal-finance/investing/i-bonds-rate-cools-down-while-long-term-value-increases/ That's an old article from May 2023. This article came out today predicting a rate of 4.25% (2.95% inflation & 1.30% fixed) https://www.msn.com/en-us/money/markets/treasury-may-set-new-i-bonds-rate-at-around-4-3/ar-BB1loJWC Kevin Slater 1 Link to comment Share on other sites More sharing options...
Kevin Slater Posted April 19 Author Share Posted April 19 Fiscal Service Announces New Savings Bonds Rates, Series I to Earn 4.30%, Series EE to Earn 2.50% — TreasuryDirect WWW.TREASURYDIRECT.GOV The new rate will be 4.3% (down from 5.27%), with a .9% fixed rate (down from 1.3). Kevin Slater thomas, BuffaloKyle and KeepItReal 1 2 Link to comment Share on other sites More sharing options...
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