The TreasuryDirect just announced the new I Bond rates today. The new inflation component is 4.84% which is about what had been predicted. The fixed rate had the largest drop it has ever had since the I Bonds started. It fell from 1.20% to 0%

I hope everyone who wanted an I Bond, bought one in April. Those who waited will be stuck with a 0% fixed rate. The new inflation component may make the I Bond a decent short term investment, but the new low fixed rate greatly hurts its long-term appeal. Now you'll just keep up with inflation (the government reported CPI-U inflation).

 

Submitted: May 1, 2008    Views: 196    Comments: 0    Likes: 1   


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