iBond rate in TreasuryDirect is wrong?

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boglerdude
Posts: 910
Joined: Fri Jul 10, 2015 1:28 am

iBond rate in TreasuryDirect is wrong?

Post by boglerdude »

https://www.treasurydirect.gov/indiv/re ... positerate

^ says rate for 4/1/19 issue should be 2.18%, my account in TreasuryDirect says 1.56%

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Brian2d
Posts: 237
Joined: Thu Jan 20, 2011 9:04 pm

Re: iBond rate in TreasuryDirect is wrong?

Post by Brian2d »

I-bonds reset on their anniversary. The rate will update in April to 2.18%, and then be in effect through September.
aristotelian
Posts: 9208
Joined: Wed Jan 11, 2017 8:05 pm

Re: iBond rate in TreasuryDirect is wrong?

Post by aristotelian »

I am showing the same thing. I wish they would clearly break out the fixed rate and which inflation rate they are using but I do trust them to get it right.
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#Cruncher
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Re: iBond rate in TreasuryDirect is wrong?

Post by #Cruncher »

Brian2d wrote: Wed Jan 13, 2021 12:48 amI-bonds reset on their anniversary. The rate will update in April to 2.18%, and then be in effect through September.
This is correct. The composite rate for I Bonds issued November through April
  • Is initially based on the semi-annual inflation rate announced November 1st.
  • After six months it's based on the semi-annual inflation rate announced May 1st.
  • After another six months it's based on the semi-annual inflation rate announced the next November 1st.
  • Et cetera
The composite rate for I Bonds issued May through October
  • Is initially based on the semi-annual inflation rate announced May 1st.
  • After six months it's based on the semi-annual inflation rate announced November 1st.
  • After another six months it's based on the semi-annual inflation rate announced the next May 1st.
  • Et cetera
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For the original poster's case this can be seen on the web page, $10,000 I Bond with 0.50% Fixed Rate Purchased April 2019. From October 2020 through March 2021 its composite rate is 1.56% based on a 0.53% semi-annual inflation rate. Then, beginning April 2021, it increases to 2.18% based on a 0.84% semi-annual inflation rate. Note the "Current Value" shown in the original post's screen shot corresponds to the $10,364 shown for October 2020 reflecting the 3-month interest penalty for I Bonds redeemed before five years.
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