I-Bond Rate 5/1/17 - 10/31/17

Discussion of the Cash portion of the Permanent Portfolio

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barrett
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I-Bond Rate 5/1/17 - 10/31/17

Post by barrett » Mon May 01, 2017 11:37 am

Just thought I'd post this here. The new fixed rate on I-Bonds is .0%. The annualized rate of inflation is 1.96%. Composite rate is, obviously, 1.96%

Here is the link:

https://seekingalpha.com/article/406744 ... _0-percent

I'm not a buyer of I-Bonds for the foreseeable future but I'm always interested to see if the gubmint is trying to market their products.
boglerdude
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Re: I-Bond Rate 5/1/17 - 10/31/17

Post by boglerdude » Mon May 01, 2017 8:43 pm

How do they decide on the rate?
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Re: I-Bond Rate 5/1/17 - 10/31/17

Post by barrett » Fri May 05, 2017 8:47 am

boglerdude wrote:How do they decide on the rate?
I would use the link I posted as a starting point. One component is inflation based on the CPI-U, and the other is what's called the fixed rate.

I only keep an eye on the new composite rate because it has a 'ripple back' effect on my inventory of I-Bonds. Using the online Treasury Direct calculator, I can now look as far out as 10/1/17 to see what those bonds will be worth.
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Re: I-Bond Rate 5/1/17 - 10/31/17

Post by dualstow » Fri May 05, 2017 1:31 pm

Thanks, Barrett. I was thinking about buying i-Bonds this year. I've been blowing them off for many years now. Can't say I'm tempted by the numbers. Luckily, I have some major home ownership expenses coming up, so I don't have the cash to be bothered with the decision.
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barrett
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Re: I-Bond Rate 5/1/17 - 10/31/17

Post by barrett » Fri May 05, 2017 2:30 pm

dualstow wrote:Luckily, I have some major home ownership expenses coming up...
That is indeed fortunate, Dualstow!

Seriously, I remember you and I discussing briefly a couple years back about what a great deal I-Bonds were when they first came out. I have some from 2000 and 2001 with fixed rates above 3% that are keepers until they mature. The TIPS I bought around the same time also had a sweet premium above inflation. The good ol' early aughts!
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Re: I-Bond Rate 5/1/17 - 10/31/17

Post by boglerdude » Fri May 05, 2017 4:24 pm

Meant how does the gov decide what fixed rate they want/need to pay
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