Series I savings bonds issued over the next six months will pay a yield of 6.89%, down from a record high as inflation shows some early signs of cooling.
The new rate, announced Tuesday, will apply to I bonds purchased from Nov. 1 through April 30. It’s made up of two components: a fixed rate that rose to 0.4% after sitting at zero since 2020, and a variable rate of 6.48%.
A desire to lock in the previous rate of 9.62% before Friday’s deadline drove a mad scramble for I bonds last week, with investors pouring more than $3 billion into the securities last week, according to the US Treasury Department.
For the month of October, sales reached almost $7 billion. That includes about $1 billion on Friday alone — comparable to the total amount sold in all of 2021 and roughly the amount sold in the three-year period from 2018 to 2020.
I bonds — designed to protect investors from inflation — have become wildly popular this year as returns on both stocks and bonds disappoint. The rate changes every six months from the bond’s purchase date, based on the prevailing rate. So if you managed to buy in October, you will have locked in the 9.62% rate until the end of March.
The rush to buy overwhelmed the clunky TreasuryDirect website, with users reporting delays and glitches. Those who couldn’t complete purchases before the last week can still buy now, just with a lower rate.
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