Series I Savings Bond Rates – November 2012
The September inflation numbers are now out, which means that we can now predict the new (November 2012) rate for Series I Savings Bonds…
As a reminder, the rate for Series I Savings Bonds is made up of two pieces: the fixed rate and the variable rate. The fixed rate is set by the feds, and has been at 0% since the fall of 2010. The variable rate is pegged to inflation, and can be easily calculated if you know how much the CPI-U has changed over the past six months. To do this, simply divide the old CPI-U into the new one and you’ll get an estimate of the semi-annual inflation rate. From there, you just double it to estimate the annual change and add the fixed rate.
Back in March, the CPI-U was at 229.392 and by this past September it had increased to 231.407. This works out to a 0.878% increase (231407/229.392 = 1.00878). If we double this, we get 1.76%. So… The variable rate should be 1.76% starting in November.
As for the fixed rate, I doubt it will be increased from the current 0%, but stranger things have happened. Assuming it remains at 0%, you can either buy now and get 2.20% (current variable rate + 0%) for the next six months, followed by 1.76% (new variable rate + 0%) for six months, or you can wait until Nov 1st and get 1.76% for six months (new variable rate + presumptive fixed rate).
If it were me, I’d buy now. Either way, these rates beat the available rates for online savings accounts at any number of banks.
What about you? Do you invest in I bonds? If so, have you already bought your allotment for 2012? Or were you holding out in hopes of better rates?
Disclaimer: Discover is a paid advertiser of this site.
Reasonable efforts are made to maintain accurate information. See the Discover online credit card application for full terms and conditions on offers and rewards.
Modified on October 27th, 2012 - One Comment
Filed under: Economy, Saving & Investing
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
Related articles...
» Treasury Confirms November 2012 Series I Savings Bond Rate» Series I Savings Bond Rates – November 2010
» Series I Savings Bond Rates – November 2011
» Treasury Confirms May 2012 Series I Savings Bond Rate
» Series I Savings Bond Fixed Rate Falls to 0% (Nov 2010)
» Treasury Confirms May 2011 Series I Savings Bond Rate
» Series I Savings Bonds Rates – May 2011
» Series I Savings Bond Rates – May 2010
Was this article useful? Please sign up to receive our content via e-mail:
One Response to “Series I Savings Bond Rates – November 2012”
Leave a Reply
Top Cards by Category
Earn 100 Reward Dollars after you make $1,000 in purchases in the first three months of Cardmembership.
Earn 25K Membership Rewards(R) points after you spend $2,000 during your first three months of Card membership.
Consumer friendly credit card with a great low rate of 7.25% and save on interest charges. No balance transfer fees and no annual fee.
The new Discover it card is out to change the way people think about credit cards. No annual fee. No overlimit fee. No foreign transaction fee & no pay-by-phone fee. No late fee on your first late payment. And Discover won't increase your APR for paying late.*
The new Discover it card is out to change the way people think about credit cards. No annual fee. No overlimit fee. No foreign transaction fee & no pay-by-phone fee. No late fee on your first late payment. And Discover won't increase your APR for paying late.*
Consumer friendly credit card with a great low rate of 7.25% and save on interest charges. No balance transfer fees and no annual fee.
Limited Time Offer: Get 25,000 Membership Rewards(R) points after you spend $5,000 in the first three months of Card membership. Enroll and select a qualifying airline to receive up to $200 annually in statement credits for incidental fees, such as checked bags and in-flight refreshments, charged by the airline.
The new Discover it card is out to change the way people think about credit cards. No annual fee. No overlimit fee. No foreign transaction fee & no pay-by-phone fee. No late fee on your first late payment. And Discover won't increase your APR for paying late.*
- How to Become a Millionaire
- How to Get Out of Debt
- The Best Dollars I've Ever Spent
- How Our Estate Plan is Structured
- How We Paid Our Mortgage In Less than 10 Years
- Money Making Ideas
- How to Manage Your Asset Allocation with Multiple Accounts
- Consumption Smoothing - Save While the Saving's Good
- How to Save on Groceries
- How Much Life Insurance Do You Need?
- Eleven Great Books About Money
- Dave Ramsey is Bad at Math
- Dish Network Customer Service SUCKS
- $8,000 Homebuyer Tax Credit
- Pay Off Mortgage Early or Invest?
- How to Claim the First-Time Homebuyer Tax Credit
- Termite Control: Sentricon vs. Termidor
- How Much Should You Pay a Babysitter?
- Ethanol Blended Gas = Lower Mileage?
- Reduced Credit Limits? Share Your Experience
- $15,000 Homebuyer Tax Credit
- Will Mac OS X Lion Kill Quicken 2007?
- Federal Income Tax Rates Went Down but Your Federal Tax Withholding Increased. Here's Why...
How to save money on insurance
- Overdraft fees soared to $32 billion in 2012
- How do you combat prom inflation?
- How should you choose a bank? Look in the mirror.
- The cost of clean water
- College debt 101
- Is it possible to live debt free?
- How to prepare for a home appraisal
- Home prices are up: good news or bad?
- A bit of foolishness
- Passive solar homes: the basics
November 5th, 2012 at 4:10 pm
You got it right it did go down. That fixed rate is still a flat zero.