I Bond rate starting May 2026

[mrfeh]

Equities are currently 67%.

Why not 100%? Since they return more than bonds?

 

[Mulligan]

I don't plan to hold I Bonds till maturity (30 years). Over a longer term, stocks are likely to do better than bonds, including I bonds.

They really arent meant to be compared to each other. IBonds are in the “savings” family not investment arena. Their formal name is Series I Savings Bonds. Of course people can own them for various reasons that suite owns needs and timelines though.

 

[DEC-1982]

March inflation sets I Bond’s new variable rate at 3.34%

U.S. all-items inflation rose 0.9% in March to an annual rate of 3.3%. By David Enna, Tipswatch.com The March inflation report — a stunner, but not a surprise — showed that non-seasonal…

tipswatch.com

"The I Bond’s fixed rate will also be reset on May 1, but it looks likely to continue at 0.9%, meaning the new composite rate would be 4.26%, up from the current 4.03%."

So I might wait till May to buy the new I bonds. Although David Enna does say "I will be writing more on this “when to buy?” topic on Sunday."

Thanks for all the offered advice and comments.

 

[Mulligan]

March inflation sets I Bond’s new variable rate at 3.34%

U.S. all-items inflation rose 0.9% in March to an annual rate of 3.3%. By David Enna, Tipswatch.com The March inflation report — a stunner, but not a surprise — showed that non-seasonal…

tipswatch.com

"The I Bond’s fixed rate will also be reset on May 1, but it looks likely to continue at 0.9%, meaning the new composite rate would be 4.26%, up from the current 4.03%."

So I might wait till May to buy the new I bonds. Although David Enna does say "I will be writing more on this “when to buy?” topic on Sunday."

Thanks for all the offered advice and comments.

Dec. ‘82. Granted its an almost trivial matter, but I only bought half my yearly allotment so far (I just checked couldnt remember), but Im going ahead and buying before May and get the bird in hand. Knowing Im plus 4% for a year. If it rises later in year, I will eventually get that tailwind too. Most of mine are heading for 4.6% (1.3% fixed) which is a fair yield for short end of yield curve comparisons. Not doing anymore gifting with the .9% fixed though.

 

[mrfeh]

Dec. ‘82. Granted its an almost trivial matter, but I only bought half my yearly allotment so far (I just checked couldnt remember), but Im going ahead and buying before May and get the bird in hand. Knowing Im plus 4% for a year. If it rises later in year, I will eventually get that tailwind too. Most of mine are heading for 4.6% (1.3% fixed) which is a fair yield for short end of yield curve comparisons. Not doing anymore gifting with the .9% fixed though.

Doing the same - buying this month.

Will start getting the 4.26 in October.

 

[Mulligan]

Tipswatch has an article out today that shows Treasury Direct confirming what I have done for a few years already. You can receive and acquire as many IBonds via the gifting process without them interfering with the annual 10k purchase limit. Just make sure you purchase your own 10k allotment first as the gifts do count against ones purchase limit if they hadnt purchased for themselves yet.
Treasury Inflation-Protected Securities
…..In other words, the recipient must make any traditional I Bond purchase — up to $10,000-per-year purchase cap — before receiving the gift box deliveries. After the purchase, the door is wide open for deliveries of unlimited amounts.

This policy, which I Bonds investors have known about anecdotally, appears to create a giant loophole and allows investors with a trusted partner to buy and deliver unlimited I Bonds in one year, one month, even one week.

 

[GenXguy]

I picked up one of these several days ago to add to my collection of I Bonds. It's just one small part of trying to minimize MAGI income for a few years.

 

[Mulligan]

I picked up one of these several days ago to add to my collection of I Bonds. It's just one small part of trying to minimize MAGI income for a few years.

Gen, I am working on that also, as I am rapidly approaching IRMAA issues if I dont get a plan together. Ive determined the second level is my line in the sand as I cant realistically stay under the original basic premium cut line. The MYGA’s may be another quicker fix option I may also use.

 

[RetiredIowaFarmer]

Greetings. Long time reader, mostly related to I-Bonds, first post. Long time I-Bond purchaser. I've been buying for my DW and I in lieu of long-term care insurance. All I care about is the fixed rate. Anything above the inflation rate (I realize LTC inflation is higher than CPI) is a cushion. If we don't use it then the kids can redeem them.

 

[mrfeh]

Tipswatch has an article out today that shows Treasury Direct confirming what I have done for a few years already. You can receive and acquire as many IBonds via the gifting process without them interfering with the annual 10k purchase limit. Just make sure you purchase your own 10k allotment first as the gifts do count against ones purchase limit if they hadnt purchased for themselves yet.
Treasury Inflation-Protected Securities
…..In other words, the recipient must make any traditional I Bond purchase — up to $10,000-per-year purchase cap — before receiving the gift box deliveries. After the purchase, the door is wide open for deliveries of unlimited amounts.

This policy, which I Bonds investors have known about anecdotally, appears to create a giant loophole and allows investors with a trusted partner to buy and deliver unlimited I Bonds in one year, one month, even one week.

Related thread on bogleheads: https://www.bogleheads.org/forum/viewtopic.php?t=346091

 

[RetiredIowaFarmer]

Thank you. Long-term reader of Bogleheads, also.

 

[GenXguy]

Gen, I am working on that also, as I am rapidly approaching IRMAA issues if I dont get a plan together. Ive determined the second level is my line in the sand as I cant realistically stay under the original basic premium cut line. The MYGA’s may be another quicker fix option I may also use.

Yeah, I've gotten 4 MYGA's in recent years to lower it some. I don't really want to get another one. I might just add some no/minimal dividend investments.

 

[Mulligan]

Its officially confirmed by Treasury today, the fixed component of the IBond remained at 0.9% percent making the next 6 month purchasing cycle 4.26%.