November 2022: I Series Bond Update

Many of you have used excess cash to purchase the US Treasury’s I Series Bonds. If you are unaware of I Series bonds and you’d like to know more, you can check out our blog “What’s in your Piggy Bank” from a few months ago.

The 6-month interest rates on these bonds will update the 1st of November. As reported by CNBC here, current estimates put the next rate at around 6.47% annualized. While the lower rate is good in terms of inflation, it means that the interest rates on these I Series Bonds will likely be lower than the current 9.62% annualized level.

As a reminder, if you haven’t reached your maximum allowed amount yet, purchasing before November 1 means that you can still get 6 months at the established higher level before the next 6 months at the newer lower level.

It’s always best to look directly on the Treasury Direct website for information but below can help you estimate where things stand with any bonds you have already purchased.

Keep in mind that the next 6-month rate is estimated based on the current inflation information available at the time of this publication. The actual reset rate may be higher or lower than this estimate. There is also a fixed rate component that is currently zero. While we don’t see rumblings of that increasing, it’s at the discretion of the treasury and may be added to the official return once announced. We will post an updated blog once we get official information.

Don’t hesitate to give us a call if you want to talk through your personal I Series bond situation.

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