New I Bond and EE Bond Rates

Rocky

I like the positive 0.20% base rate. First time since 2009 ( I Bond Rate History) base rates are above 0%

From Series I Bond Interest Rates

The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate. The 1.38% earnings rate for I bonds bought from from November 1, 2013 through April 30, 2014 will apply for the succeeding six months after the issue date.

EE Bonds now pay next to nothing at 0.10%!

From Series EE Savings Bond Interest Rate History

November 1, 2013 Announcement: Series EE bonds issued from November 1, 2013 through April 30, 2014 will earn today's announced rate of 0.10%./blockquote>

From TIPS Base Rates

DATE 	  5 YR	7 YR	10 YR	20 YR	30 YR
11/01/13	-0.33	0.20	0.50	1.11	1.41
Saturday Nov 2, 2013, 11:02 AM

TIPS with base rates above 0.2, currently the 10 to 30 year TIPS are better than i Bonds and EE Bonds.

msf

Thanks for the reminder. I always forget to check when the new rates come out.

For people interested in maxing out Series I savings bonds, you can get another $5-$10K ($5K per tax return, so $10K if joint filing separately) by applying your refund to purchase the savings bonds. (This is in addition to the $10K/SSN limit through TreasuryDirect.) By making an extra estimated payment by Jan 15th, you can make sure you're getting a refund to pay for these bonds.

You need to file form 8888 with your return.

I like Series I savings bonds as a place to stash emergency cash, so long as one is sure it won't be used for at least a year. (No access until a year is up, then a forfeit of 90 days interest for the next four years. Aside from these restrictions, entirely liquid, and even at low inflation, better than one would do in a bank with zero volatility in value.)

As to what date will be on those savings bonds (more to the point, whether you'll get this 0.20% base rate), that apparently depends on when the IRS submits the purchase to the Treasury sales office, according to this TreasuryDirect FAQ.

Who knows how fast that happens? It's not as though the IRS is part of the Treasury Department. Oh wait, it is.

Jim0445

And if you don't make your extra estimated payment by Jan 15th, you can still make an additional payment (to fund your iBond purchase); just be sure to allow enough time between your payment and the time you file your return for the check to be credited to your IRS account.) I did this in March 2013 before filing my 2012 return in April 2013 and it worked.

msf

Reply to @Jim0445: Neat trick. I guess it works because, so long as you haven't underpaid your estimates, the IRS doesn't care when it gets its money (which is why you can pay whatever is still due on April 15th).