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Friday, May 01, 2009

2009 I-Bond Rates: May 1 through Oct 31, 2009

The Bureau of the Public Debt today announced an earnings rate of 0.00% for Series I Savings Bonds issued from May through October 2009. Earnings rates for I bonds are set each May 1 and November 1. Interest accrues monthly and compounds semiannually. Bonds held less than five years are subject to a three-month interest penalty. I Bonds have an interest-bearing life of 30 years.

I Bond Earnings Rate 0.00%, Fixed Rate 0.10%

For more information, see:
The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate.

The 0.00% earnings rate for I bonds bought from May through October 2009 will apply for their first six months after issue. The earnings rate combines a 0.10% fixed rate of return with the -5.56% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). When the inflation rate is less than zero, a bond's earnings rate is less than its fixed rate (but the earnings rate is never less than zero).

The fixed rate applies for the 30-year life of I bonds purchased during this six-month period.

The CPI-U decreased from 218.783 to 212.709 from September 2008 through March 2009, a six-month change of -2.78%.

For older ibonds and what they will pay, see:

4 comments:

  1. So Kirk,

    How does this work for I bonds I purchased awhile ago. Are all I bonds at zero percent or are these just for new ones purchased.

    Mark
    http://mark24609.blogspot.com/

    ReplyDelete
  2. There is a formula to calculate what your current iBonds pay at a link in the story: ibonds explained

    ReplyDelete
  3. and there is I Bond Composite Rates (iBonds) with the current rates for each older iBond listed.

    ReplyDelete
  4. hi. can we have an idea yet what will happen on nov 1,2009??? I'd be happy if the inflation rate was anything over O as my fixed rates are about 1.5%

    If the total rate is 0, I'm going to sell

    thank yuou

    ReplyDelete

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