Posted 1/10/2024, 9:09:04 PM
As Inflation Eases, I Bond Rates Drop from Recent Highs
- I bond rates have dropped from their peak in 2021-2022 as inflation has come down
- I bonds issued in Nov 2021 & May 2022 earned over 7% annually due to high inflation at the time
- Current I bonds only earn 3.97% annually with lower inflation rate factored in
- Financial experts recommend cashing out old high-rate I bonds and reinvesting proceeds
- Alternatives include money markets, CD ladders, and short-term corporate bonds