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Originally Posted by Russell
So when is the base rate for I bonds supposed to be highest ? Is it directly proportional to the interest rates ? If so, since we're in the rising interest rate market wouldn't it be better to wait and then lock in the highest rate when moving your large chunk from ED/ING to I-Bonds ?
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The fixed rate does seem related to interest rates. You can see the history of the two from the
I Bond rate history and the
Feds fund rate history. Note the biggest drop in the fixed rate was in 2001 when it dropped from 3.4% to 2% and the Feds funds rate went from 6.5% to 1.75%.