New I Bond Rates - 1.54% to 5.17%

Rocky

From Current Series I Bond Rates

When the inflation rate is less than zero, the earnings rate will be less than the fixed rate but never less than zero.

Fixed rate = 0.10%
6 month Inflation rate = +0.77%
Composite rate =[fixed rate + (2 x inflation rate) + (fixed rate x inflation rate)]
[0.0010 + (2 x 0.0077) + (0.0010 x 0.0077)]= [0.0010 + 0.0154 + 0.0000077)] = 0.0164077
0.0164077 x 100% = +1.64%

==> Thus, the current I Bond Composite Earnings Rate is 1.64% with a fixed rate of 0.10%

For older iBonds you hold, see Current Interest Rates for Older Series-I Bonds

I own some with a 3.0% base rate that will pay 4.56%!

msf

Even with a 0.0% fixed rate on some generations of I-Bonds, try to find another investment as liquid (after one year of ownership) yielding 1.54%, principal guaranteed, backed by the US government. Tax deferred (and state tax exempt) to boot.

Great place for emergency cash.

Old_Joe

Yes, but the maximum purchase allowed is $10,000 per calendar year. That wouldn't make a dent in my need to find a decent place to park cash.

Anna

OJ, 'Tis a problem that gets worse every year. My husband goes RMD next year and then me in 2018 and my mattresses are full to overflowing without any cozy comfort at all. Even the utility room storage cabinets are already full. Where do I put it? Muni and blinders?

msf

Old_Joe said:

Yes, but the maximum purchase allowed is $10,000 per calendar year. That wouldn't make a dent in my need to find a decent place to park cash.

You can also buy $5K/year in paper(!) bonds by purchasing them directly with your IRS tax refund.
https://www.treasurydirect.gov/indiv/research/faq/faq_irstaxfeature.htm#refund

So maybe you can make a dent-and-a-half in your stash.

msf

Anna said:

OJ, 'Tis a problem that gets worse every year. My husband goes RMD next year and then me in 2018 and my mattresses are full to overflowing without any cozy comfort at all. Even the utility room storage cabinets are already full. Where do I put it? Muni and blinders?

Don't know, now that the bloom appears to be off RPHYX. Maybe ZEOIX? See thread here.

Otherwise, I still look to internet banks (1%+ liquid rates), or short-intermediate munis (the blinders don't have to be quite so dark) like VMLTX.