Advice | An I bond is now at 4.28 percent. Are they still a good deal? (2024)
The love affair with I bonds may be over.
Two years ago, investors looking for refuge from the stock market’s unpredictability rushed to the security of inflation-protected I bonds when the rate jumped to an all-time high of 9.62 percent.
But then inflation began to wane, pushing down I bond rates. The Treasury Department announced this week a new rate of 4.28 percent, a drop from 5.27 percent.
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Despite the expected rate decline, I bonds are “still a good deal” for long-term investors, according to Ken Tumin, founder and editor of DepositAccounts.com, which closely tracks these assets.
The May I Bond composite rate is 4.28% (US Treasury) which is 2.14% earned over 6 months. Breaking News: Official Treasury I Bond Rate announced! The May 2024 I Bond Fixed Rate is 1.30%.
The current composite I bond rate is 4.28%. This includes a 1.30% fixed rate and a 1.48% inflation rate. The current rate applies for six months to bonds purchased between May 1, 2024, and Oct.
There are two primary reasons a bond might be worth less than its listed face value. A savings bond, for example, is sold at a discount to its face value and steadily appreciates in price as the bond approaches its maturity date. Upon maturity, the bond is redeemed for the full face value.
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