I bond fixed rate drops a bit, EE bond rate drops more
Thursday, November 1st, 2007
Categorized as: Yesterday's News (old post archive)
The Treasury announced this morning that the fixed interest rate it will pay on Series I Savings Bonds issued during the next six months will be 1.2%, down from the previous 1.3%.
For Series EE Savings Bonds, the new fixed rate will be 3.0%, down from the previous 3.4%.
During their first six-month rate period, I bonds issued beginning today will have a composite rate of 4.28%. The inflation component, which changes every six months for all I bonds, will be 3.06% for the next six-month rate period.
In their next six-month rate period, older I bonds will pay a variety of rates, depending on issue date, ranging from a low of 4.07% for I bonds with the lowest fixed base-rate of 1.00% to a high of 6.71% for I bonds with the highest fixed base-rate of 3.60%.
The new Series EE bond rate, which is set “administratively” but is based on the average rate for 10-year Treasury securities, now lags even further behind the rates set for EE bonds issued from May 1997 through April 2005. The rate for those bonds is set by formula – 90% of the average 5-year Treasury rate. They will pay 4.11% during their next six-month rate period, down slightly from 4.15% previously.