If it’s May or November, it’s time for an update to the rates on a Series I Savings Bond!
As of May 1st, 2012, the Treasury Department announced that the fixed rate on newly issued Series I bonds would remain at 0.00%. Series I bonds have had a 0% fixed rate dating back to November 2010 (they were hardly much higher before then, the last time it was above 1% was back in November 2007 to April 2008 when they were 1.2%). This is not surprising given monetary policy.
The inflation rate predictably, since we can calculate it based on the CPI-U , slipped as well to 1.10% from 1.53%, the preceding six months.
Using our handy Series I rate calculator , we know that bonds you purchase today will have a yield of 2.20% for the next six months (when the inflation rate will change).
I’ve long thought of Series I bonds as being a good investment , useful for that ultra safe part of your portfolio where you just want to get a little more than your average online savings account .
In recent years, it’s been a lot more!