Search Bob Brinker Fan Club Blogs

Friday, May 01, 2009

New I-Bond Rates; New iBond Composite Rates

The Bureau of the Public Debt today announced an earnings rate of 0.00% for Series I Savings Bonds issued from May through October 2009. Earnings rates (also know as the composite rates) for I bonds are set each May 1 and November 1. Interest accrues monthly and compounds semiannually. Bonds held less than five years are subject to a three-month interest penalty. I Bonds have an interest-bearing life of 30 years.

I Bond Earnings Rate 0.00%, Fixed Rate 0.10%

For more information, see:
The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate.

The 0.00% earnings rate for I bonds bought from May through October 2009 will apply for their first six months after issue. The earnings rate combines a 0.10% fixed rate of return with the -5.56% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). When the inflation rate is less than zero, a bond's earnings rate is less than its fixed rate (but the earnings rate is never less than zero).

The fixed rate applies for the 30-year life of I bonds purchased during this six-month period.

The CPI-U decreased from 218.783 to 212.709 from September 2008 through March 2009, a six-month change of -2.78%.

For older ibonds and what they will pay, see:

1 comment:

  1. To Bob Brinker,
    I have been a listener now for 3 years and counting. I had a question about I-bonds. I hear that I-bonds are a great way to invest in especially when dealing with inflation. I know that right now there is no inflation, but I am worried in the future there will be. At 36 years of age am I too young to invest in I-bonds and is this a good time to invest in them? Thanks Bob

    Leslie Freday


FREE Updates Mailing List

We email regular "FREE Bob Brinker Fan Club Updates" to everyone on our "Bob Brinker Fan Club" distribution list. If you would like to get on this list, then click this link.

Top Rated Newsletter

Timer Digest Features
Kirk Lindstrom's Investment Letter
on its Cover

Cick to read the full page article!

US Treasury Rates at a Glance - iBond Rates - LIBOR Rates

Must Read:
Beware of Annuities - Payday Loans Warning