Quote:
Originally Posted by readytorock
Does the interest rate *really* lock in at 4.84% for 30 years?
|
Quote:
Originally Posted by cooliemae
Series I bonds have two components: a fixed base rate and a semiannual inflation rate.
|
cooliemae is correct. The overall rate is NOT locked in. What is locked in is the fixed base rate. The inflation component adjusts every 6 months in May and November I believe.
These can be very good deals. For example, about 5 years ago, I bought several I bonds ($25,000 worth to be exact). They have a fixed rate of 3.6%. The current inflation rate is 2.42%. So my bonds are currently earning 6.02%. Pretty darn good by current standards.