Find I Bonds Interest Rates BEFORE They're Published (Series I Savings Bonds)
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- เผยแพร่เมื่อ 27 ก.ค. 2024
- Finance TH-camrs and bloggers like me share I Bonds rate predictions all the time, but here's a little secret: You don't need us!
These predictions aren't magic. It's easy to calculate upcoming interest rates on Series I Savings Bonds (including both the inflation rate and the fixed rate) - before the US Treasury announces them - by following a formula that works in any year.
Make sure to save this video so you can continue to reference it in the future!
As an example, this video also includes an I Bonds rate prediction for November 2022.
Relevant links:
- CPI-U data: www.usinflationcalculator.com...
- TIPS rates: home.treasury.gov/resource-ce...
- Why You Should ONLY Buy I Bonds in April or October: • Why You Should ONLY Bu...
- My actual investment portfolio: www.tripofalifestyle.com/mone...
00:00 - Introduction & Basics
01:51 - Why Calculate I-Bonds Rates Early?
03:03 - How To Calculate Future I-Bonds Rates
07:43 - Only Buy I-Bonds in April & October
#investing #finance #economics
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We're Lauren and Steven, and we followed some simple financial guidelines that allowed us to quit our full-time jobs forever by age 29. We created Trip Of A Lifestyle to share the knowledge that changed our lives for the better. All of our content is free.
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www.tripofalifestyle.com
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Super informative! I was looking for how to calculate future I-bond rates.
Thank you
Awesome. Really happy it helped you!
Steven, another no-nonsense, detailed, easy-to-understand video. Well done!
Thank you!
Update 10-13-2022: The September 2022 CPI-U number is 296.808. Plugging it into the TreasuryDirect formula yields 6.47% implied reset for November 2022 inflation-adjusted annualized rate. Dunno about the fixed rate (probably still 0%)
((296.808-287.504)/287.504)x2 a.k.a. ((Sep CPI-U - Mar CPI-U) / (Mar CPI-U)) x 2 (Both math formulas give the same answer -- just the one I'm using is what is posted on TreasuryDirect)
Still not too shabby. A I-bond purchased during October 2022 would have a semi-annualized compounded rate of return (I think I got the terminology right) of 8.2% for the 1st year.
Thanks for the video, was wondering about this
Glad we could help!
Great video thank you!
Our pleasure. Don't forget to subscribe. 😊
I-bonds are a good place to keep emergency fund money tho right? since you can cash it out any time after the 1st year..
As long as you have even more emergency fund money in cash during that first 1-year period 😉
Is it possible to transfer my old ibonds that i have held for over 5 years into new ibonds with the much higher interest rate?
Your old I Bonds should already be earning the new rate. Remember, the inflation rate renews every 6 months for all existing I Bonds. In fact, your old bonds may be earning even more than new ones, because you might have bought them when the fixed rate component was higher than the current 0%!
Where can I find CPIU numbers? Could you share with me the link for that? Thank you.
The links to those resources are in the video description!
if only there weren't a 10k limit.
Look into the gift box method of doubling.
If April 2023 inflation CPI-U is less than that of September 2022, will I get negative I bonds rate for May 2023, as I bought I bonds in August 2022?
Nope. The composite rate of an I Bond can never be less than 0%.
@@TripOfALifestyleIf CPI-U for April 2023 is 274.310, and known CPI-U for Sept 2022 was 296.808, According to your formula: (274.310/296.808-1)x2=-15%
@@elachang Yes, but in the video, it also says "if the sum is negative, round up to 0%" for the composite rate. It can't go negative. 🙂
So what do you predict the CPI-U will be on thursday and the consequent I-bond rate November 1st?
That's all in the video! 😅
September 2022 CPI-U number is 296.808. Implied I-bond rate 6.47% in November. If you buy your I-bond during October your semi-annual compound rate of return will be 8.2% for the 1st year.
Good information
Can you answer this question, can someone with a business and a trust buy 30k worth of I bonds?
What are you investing in right now? What should I buy? The market is taking a hit is this an opportunity to jump on?
We don't pay any attention to recent price changes when making investment decisions in the stock market. Here's how we do it: www.tripofalifestyle.com/money/how-to-invest-in-stocks/
@@TripOfALifestyle thank you I was looking for this section in the blog I've read almost the whole thing! I love everything about it thank you truly 🙏
@@BurgerBoy-yv1vh Glad to hear it! 🙂
If the April 2023 cpi-u rate is exactly the same as the current October rate, does that mean the I-bond May rate will be zero?
Check out this video for a detailed answer: th-cam.com/video/AN08Aqc8h6c/w-d-xo.html
@@TripOfALifestyle So, according to your formula, if inflation is just as high as it is now, the May 1 2023 (super high) new rate will be zero. That seems odd.
@@gabymalembe If CPI-U is the same number on two different dates, then it means that the average inflation rate was 0% between those two dates. CPI-U isn't a rate; it's an index value that is proportional to the average price of goods at a given time.