Posted 1/10/2024, 5:56:06 PM
As Inflation Cools, Older I Bonds Lose Appeal
- I bonds purchased in 2021-2022 when rates were over 7% are now only paying around 4% as inflation has cooled
- The I bond rate consists of a fixed rate for the life of the bond plus a variable inflation rate
- The current annual I bond rate is 5.27% - 1.3% fixed and 3.97% variable
- Older I bonds bought when fixed rates were 0% are now just earning the lower variable rate
- Financial experts recommend cashing out old I bonds and reinvesting proceeds in things like money markets and CD ladders