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So if I buy when I normally do at the end of January my fixed rate will be 0, but if I wait till May there is a chance fixed portion could be higher?

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RS4Rings said:   So if I buy when I normally do at the end of January my fixed rate will be 0, but if I wait till May there is a chance fixed portion could be higher?
† Keyword is a "chance"†

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MoneyOCD said:   October CPI-U is posted = 237.433†
Base line for next change (September) = 238.031
Total inflation for†Oct = -0.25%

We have†FIVE more months to go before new I-bonds inflation component rate will be set.

† Damn you oil, you're making my I-bonds earn less! (probably, in five months)

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ntr91 said:   
MoneyOCD said:   October CPI-U is posted = 237.433†
Base line for next change (September) = 238.031
Total inflation for†Oct = -0.25%

We have†FIVE more months to go before new I-bonds inflation component rate will be set.

† Damn you oil, you're making my I-bonds earn less! (probably, in five months)

Maybe oil going down is a good thing for your i-bonds.

No matter how much oil falls, your i-bond rate will still be zero.† So lets hope for a dramatic decrease in inflation.

i.e. Inflation falls for the six month period at a rate of -2.00% then goes up the next six months at 1.00%. For the twelve month period you earned 1.00% on your I-bonds yet inflation fell 1.00% for that 12 month period.† Your I-bonds did not match inflation as they were designed, they beat inflation.†

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From a macroeconomic perspective, you would not want that. Deflation will make inflation look like a tame child.

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Inflation does not effect everyone the same. I was doing much better when we had higher inflation but was making 6% on my money

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November CPI-U is posted =236.151
Base line for next change (September) =†238.031
Total inflation for†Oct+Nov = -0.79%

We have FOUR††more months to go before new I-bonds inflation component rate will be set.

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With Barclay's 5 year CD you can earn 1.5% APY after 18 months since the penalty is only 180 days on a 2.25% APY.

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December CPI-U is posted =234.812
Base line for next change (September) =†238.031
Total inflation for†Oct+Nov+Dec = -1.35%

We have THREE †more months to go before new I-bonds inflation component rate will be set.

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I have always bought at the end of January. However, it looks like we are going to have a six month period of zero interest rate. So unless they have a great fixed rate in May, I will buy in November this year.

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Maybe they'll up the fixed rate to compensate, we can hope

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Think I may buy EE rather than I this year. I can wait the 20 years for 3.5%.

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stormdog123 said:   I have always bought at the end of January. However, it looks like we are going to have a six month period of zero interest rate. So unless they have a great fixed rate in May, I will buy in November this year.
† Above is very uncertain though - last 3 months of the year historically had negative inflation rates, and first 3 months of the year historically had highest positive inflation rates that are usually offset negatives for I-bond May rate calculation.
That said, we still can have zero rate starting in May but at this point it is too early to really tell.

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Why don't you guys just invest in a bond mutual fund or ETF?

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Medikit said:   Why don't you guys just invest in a bond mutual fund or ETF?
† The put option makes I and EE bonds very attractive. There is a reason there is a Dollar cap on how much you can put into I and EE every year.

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