The last opportunity to secure an annual interest rate of 9.62% for Series I bonds for six months, as you must purchase and receive your confirmation email by October 28, before a rate drop of over 3% occurs. Treasury yields are falling, too.
Experts say you need to act immediately if you want to secure and take advantage of the current 9.62% annual interest on Series I bonds.
To get the rate, you must purchase and receive your confirmation email by October 28, according to TreasuryDirect.
Experts are predicting, based on inflation, that the rate will fall to roughly 6.48% in November based on the latest inflation data from the U.S. Bureau of Labor Statistics, CNBC reported.
Series I savings bonds are intended to protect holders from inflation. You can earn both a fixed rate of interest, as well as a rate that changes with inflation with an I-bond, according to Treasury Direct.
The inflation rate is set twice a year for the next six months by the treasury.
With a Series I savings bond, you collect all the money after you cash in the bond. If you have a paper I bond, you must submit the paper bond to cash it in. However, if you have an electronic I bond, the Treasury will pay automatically when the bond matures if you haven’t cashed it in before then.
You can redeem (cash in) an I bond any time after 12 months. However, if you redeem the bond in less than five years, you will forfeit the last 3 months of interest.
For example, if you were to redeem your bond after 18 months, you would collect the first 15 months of interest.
Investors who want to take advantage of higher yields on treasury bonds need to act fast on those before November as well.
The 10-year treasury bond yield rose to 4.23% on Thursday, marking its highest level since June 2008, CNN reported.
However, after opening at 4.11%, by 1:31 PM EDT on Thursday afternoon the yield dropped to 3.947%, Yahoo reported.
The downward slide comes after the latest US GDP report which shows that some inflationary pressures could be easing. The policy-sensitive 2-year Treasury yield was also down 9 basis points at 4.33%, CNBC reported. The 3-month treasury was at 4.03%, MV 1-year treasury was at 4.51%, CNBC reported.