The U.S. Department of the Treasury announced the new rate for Series I bonds through October 2024.
Series I bonds, an inflation-protected and nearly risk-free asset, will pay 4.28% through October 2024, the U.S. Department of the Treasury announced Tuesday.Short-term investors have more competitive options for cash. But the fixed rate could still appeal to long-term investors, experts say.Despite falling rates, the I bond's fixed rate portion is still"very attractive" for long-term investors, said Ken Tumin, founder of DepositAccounts.
After the first six months, the variable yield changes to the next announced rate. For example, if you bought I bonds in September of any given year, yourBy comparison, the fixed rate, which is harder to predict, stays the same after purchase. Every May and November, the Treasury can adjust or keep the fixed rate the same.. But I bonds could still appeal to long-term investors, according to Milwaukee-based certified financial planner Jeremy Keil at Keil Financial Partners.
Long-term savers may also like the tax benefits, said Tumin. There are no state or local levies on interest and you can defer federal taxes until redemption.Of course, you need to consider your goals and timeline before purchasing. One of the downsides of I bonds is you can't access the money for at least one year and there's a three-month interest penalty if you tap the funds within five years.2. How long will I receive 4.28%? Six months after purchase.
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