New interest rates for I bonds are out. The interest rate is 4.3% for the next 6 months. The fixed rate is 0.9%, up from 0.4% in the Nov 2022 to Apr 2023 period. This fixed rate will be available to you as long as you buy the new bond. The remainder will vary with inflation.
There are good and bad on I Bonds, as covered here and here. The good news is measured inflation is coming down. If you had to compare with 10 yr Treasury Inflation Protected Securities, the yield is currently 1.329%. TIPS are not guaranteed to return positive principal, unlike I bonds.
Between SoFi, Apple Savings, I Bonds, TIPS and CDs, the environment for saving is the best it has been in years. Keep in mind the idea of money flows, money lakes, emergency savings lakes, and debt lakes, which we wrote about here. It’s not as good as the 9.18% YTD return on the S&P 500, better than the 3.52% YTD return of the Dow, or the high flying QQQ YTD return of 21.32%. Those carry risk of loss. It’s good to have both.
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