Why isn't my i-bond gaining a higher interest rate?

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justsomeguy2018
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Joined: Wed Oct 03, 2018 8:11 pm

Why isn't my i-bond gaining a higher interest rate?

Post by justsomeguy2018 »

I have an i-bond that I purchased in April 2020.

The interest rate on it according to Treasury Direct is only 7.33%.

The i-bonds I bought in December 2021 and January 2022 are earning 9.62%.

Is there a reason the April 2020 one is only earning 7.33%? The base rate when I bought it was 0.20%. I know there is some kind of weird payment schedule with i-bonds but I thought by now it would be earning the 9%+ rate.

Since I haven't been earning the 9% rate yet, will I eventually get a year's worth of 9% interest rate applied to this i-bond based on the schedule? I feel like I should get 1 year at 9.82%, no?
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Nate79
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Re: Why isn't my i-bond gaining a higher interest rate?

Post by Nate79 »

You get a rate change to the new rates every 6 months from the month you purchased them.
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justsomeguy2018
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Re: Why isn't my i-bond gaining a higher interest rate?

Post by justsomeguy2018 »

Nate79 wrote: Thu Sep 22, 2022 11:58 am You get a rate change to the new rates every 6 months from the month you purchased them.
So next month (or maybe November?) I should get the 9.82% rate? Will I get it for 1 year? Or did I somehow miss out on the higher interest period due to when I bought the i-bond? Both of other i-bonds have been paying 9%+ for over 6 months.
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Nate79
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Re: Why isn't my i-bond gaining a higher interest rate?

Post by Nate79 »

Rates are only for 6 months. You never miss a rate. You get the next rate after the existing rate. You can check the schedule here for when your next rates go into effect:
https://www.treasurydirect.gov/indiv/re ... dterms.htm
Table titled When does my bond change rates?

The full rate chart is here:
https://www.treasurydirect.gov/indiv/re ... eChart.pdf
billyt
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Re: Why isn't my i-bond gaining a higher interest rate?

Post by billyt »

Yeah, you are not quite there yet. I think that if you bought in April the next rate change will be October.
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markjk
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Re: Why isn't my i-bond gaining a higher interest rate?

Post by markjk »

billyt wrote: Thu Sep 22, 2022 12:09 pm Yeah, you are not quite there yet. I think that if you bought in April the next rate change will be October.
+1 The actual timing of rate change for your bond depends on the month you bought it. Your April bond is still earning the previous 6 month rate. You are about to move into the current higher rate for your next 6 month of payments.

https://www.treasurydirect.gov/indiv/re ... s.htm#past
Doc7
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Joined: Fri Aug 24, 2007 12:55 pm

Re: Why isn't my i-bond gaining a higher interest rate?

Post by Doc7 »

This is why i track all my i bonds in this tool:
https://eyebonds.info/downloads/pages/I ... lator.html

It clearly shows you all of this.
Doc7
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Re: Why isn't my i-bond gaining a higher interest rate?

Post by Doc7 »

justsomeguy2018 wrote: Thu Sep 22, 2022 12:02 pm
Nate79 wrote: Thu Sep 22, 2022 11:58 am You get a rate change to the new rates every 6 months from the month you purchased them.
So next month (or maybe November?) I should get the 9.82% rate? Will I get it for 1 year? Or did I somehow miss out on the higher interest period due to when I bought the i-bond? Both of other i-bonds have been paying 9%+ for over 6 months.
The other ones cannot possibly have been paying 9% for over 6 months as the 9.62% rate only started in May, 4 months ago. Statements like this may detract from the question as you are not providing fact based data to allow posters to understand your concerns and clarify any situations you may need help with.


I bonds purchased in December began earning 9.62% in June, and will do so through November. The one you bought in January only started earning 9.62% in July. Both will start earning the November 2022 rate (which you can calculate after CPI numbers for September come out in Mid October) on the anniversary month of their purchase.
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