The 3.36% earnings rate for I bonds bought from November 2, 2009 through April 30, 2010 will apply for their first six months after issue. The earnings rate combines a 0.30% fixed rate of return with the 3.06% 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).
Bob Brinker says on the radio we are seeing deflation but that is due to a bubble in inflation a year ago due to higher oil prices. Those good at math can easily see the bubble in the CPI-U data corresponding to oil prices near $150. If the CPI stays where it was for the last (Sept.'09) reading then we will see significant ANNUAL inflation in November and December. For example:
Dec. 2008 CPI-U = 210.228The fixed rate for Series-I Bonds applies for the 30-year life of I bonds purchased during this six-month period.
Sept. 2009 CPI-U = 215.969
Change = 5.741 / 210.228 x 100%
or 2.73% annual inflation!
- $50 for a $50 I Bond when purchasing paper bond certificates
- $25 for a $25 I bond when purchased electronically via TreasuryDirect
- $5,000 in TreasuryDirect and $5,000 in paper bonds
- $10,000 total per social security number
- Paper bonds: $50, $75, $100, $200, $500, $1,000, and $5,000
- Electronic bonds via TreasuryDirect: purchase to the penny for $25 or more
For older ibonds and what they will pay, see:
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