Treasury Department announces new Series I bond rate of 4.26% for the next six months
The Treasury Department has announced a new Series I bond rate of 4.26% for the next six months, reflecting updated inflation adjustments. While the rate is significantly lower than the record 9.62% seen in May 2022, it has renewed investor interest as inflation shows signs of rising again. Some long-term investors continue to find I bonds attractive despite declining rates and redemptions by shorter-term holders.
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Amid soaring inflation, the I bond rate hit a record high of 9.62% in May 2022, and investors poured into the government-backed, nearly risk-free asset. Many shorter-term investors have since redeemed I bonds as rates and inflation have fallen. But the higher fixed rate has remained attractive to some longer-term investors, experts say.Earlier this year, I bond interest was "lukewarm," according to David Enna, founder of Tipswatch.com, a website that tracks Treasury inflation-protected securities, or TIPS, and I bond rates. But some investors are watching I bonds again as inflation has ticked higher, he said.
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