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by tallanvor
1510 days ago
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Note that the fixed component is fixed for the life of the bond - so bonds purchased while the fixed rate is 0% will be 0% for the lifetime of the bond. The rate tied to inflation is set every 6 months (May 1 and November 1), and when you buy a bond, the rate holds for 6 months. So if you bought on April 25, then in October you would get approximately 3.6% of the value of the bonds you bought, and the rate would reset to the current 6 month period, which is expected to be somewhere around 9% when they announce it soon. You can cash in the bonds after either a year or 15 months (I don't remember for sure), but if you cash them in less than 5 years, you lose 3 months of interest. I'm guessing they don't give you money if you cancel when the rate is negative which can happen. |
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It can't happen -- I-bonds have a composite rate floor of 0%.