Effective today,
Series EE savings bonds issued May 2023 through October 2023 will earn an annual fixed rate of 2.50% and Series I savings bonds will earn a composite rate of 4.30%, a portion of which is indexed to inflation every six months. The EE bond fixed rate applies to a bond's 20-year original maturity.
November 1, 2022. Effective today, Series EE savings bonds issued November 2022 through April 2023 will earn an annual fixed rate of 2.10% and Series I savings bonds will earn a composite rate of 6.89%, a portion of which is indexed to inflation every six months.
I bonds issued from May 1, 2023, to Oct. 31, 2023, have a composite rate of 4.30%. That includes a 0.90% fixed rate and a 1.69% inflation rate. Because I bonds are fully backed by the U.S. government, they are considered a relatively safe investment.
That said, I bonds do have some disadvantages, such as the fact that the bonds cannot be redeemed for one year after purchase and their early redemption penalties. If you redeem your I bond within five years of purchasing it, you'll lose the last three months of interest the bond earns.
What will the May 2023 I Bond inflation rate be? The May 2023 I Bond inflation rate is announced at 3.38%* based on the March 2023 CPI-U data.
Effective today, Series EE savings bonds issued May 2022 through October 2022 will earn an annual fixed rate of . 10% and Series I savings bonds will earn a composite rate of 9.62%, a portion of which is indexed to inflation every six months.
After applying a certain formula and rounding, the Treasury arrived at the 4.30 percent composite rate for I bonds issued from May 2023 through October 2023.
The variable rate on I bonds will drop in May. Those who want short-term returns might prefer to buy I bonds in April to lock in higher rates. Long-term investors might be better served by waiting.
While there's no limit on how often you can buy I bonds, there is a limit on how much a given Social Security number can purchase annually. Here are the annual limits: Up to $10,000 in I bonds annually online.
I bonds: A low-risk investing strategy
Because I bonds are backed by the U.S. government they carry very little risk. Plus, you'll have the added bonus of protecting your cash's purchasing power.
You can cash in (redeem) your I bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest.
We believe the yield will most likely end the year between 2.0% and 2.25%. Although we will likely see some periods of yield curve steepening, we expect the difference between the two-year and 10-year yields to narrow, resulting in a flatter yield curve for 2022.
Individuals, organizations, fiduciaries, and corporate investors may buy Treasury securities through a bank, broker, or dealer.
The latest iBond Series HK$15,000,000,000 Retail Bonds Due 2024 (Issue No.: 03GB2406R; Stock Code: 4246) (2024 iBond) has a minimum denomination of HK$10,000 and a term of three years. The semi-annual interest payments are linked to average annual inflation in Hong Kong, subject to a minimum interest rate of 2.00%.
Fannie Mae. 30-year fixed rate mortgage will average 6.4% for Q2 2023, according to the May Housing Forecast. National Association of Realtors (NAR). “[F]orecasts that … mortgage rates will drop—with the 30-year fixed mortgage rate progressively falling to 6.0% this year and to 5.6% in 2024.”
1) Interest-rate forecast.
We project a year-end 2023 federal-funds rate of 4.75%, falling below 2.00% by mid-2025. That will help drive the 10-year Treasury yield down to 2.25% in 2025 from an average of 3.5% in 2023. We expect the 30-year mortgage rate to fall from an average 6.25% in 2025 to 4% in 2025.
According to the Barclay's U.S. Aggregate Bond Index, 2022 was the worst year in since they started recording in 1976 for bonds. Since 1976 in fact, we've only have 5 negative years in the bond market. Last year, 2022, was historically bad – down 13%.
If you want to keep all your good interest and get the most out of your I Bonds you should cash out: after earning 3 months' of lower interest and. just after the 1st of the month.
2023 is shaping up to be better for bonds
The Federal Reserve is poised to continue raising interest rates, but the increase is unlikely to be as dramatic or rapid — in which case the impact on bonds would be more muted, advisors said.
Summary. I-bonds currently offer a 0.4% fixed rate which is expected to increase to 0.7-1.0% in May 2023.
The United States 10 Years Government Bond Yield is expected to be 3.716% by the end of September 2023.
Another advantage is that TIPS make regular, semiannual interest payments, whereas I Bond investors only receive their accrued income when they sell. That makes TIPS preferable to I Bonds for those seeking current income.