US I Bonds seem to be pretty at a pretty good rate this 6 month period and are looking better for next. I’m curious if I happen to be missing something

I’ve never bought I Bonds before so not sure if I’m missing something important. But this seems like a decent deal.

The current composite rate is at 3.54% for 6 months. They would need to be purchased before the end of October to get that rate. That is when the new rate kicks in.

The new rate is looking like it will be over 6% for the next 6 month period. Obviously that is subject to change and if Kiosaki is right, it just might 😉 But it is probably not going to go to zero. Even if it does you still get an annual adjusted rate of about 1.77% based on the 3.54% from the first half. Still better than any bank I have seen recently.

It’s my understanding that you have to hold them for a year. Over the next 4 years you can turn them in but you lose 3 months interest. The interest rate will never go below zero even if inflation is negative. So the worst case is you lose a half a percent that you would have gotten in a bank. Maybe a bit more if rates start to go up. They are also not taxable at the state level.

Am I missing anything important? One thing I can think of is it doesn’t seem to be compounding interest. I wouldn’t call that terribly important but does seem worth noting.

References: Article that discusses expected inflation rate for the upcoming period

https://tipswatch.com/tracking-inflation-and-i-bonds/

Treasury direct explanation of I Bonds with the current rate.

https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm#iinfo

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US I Bonds seem to be pretty at a pretty good rate this 6 month period and are looking better for next. I’m curious if I happen to be missing something published first on https://insurancecartoronto.weebly.com/

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