New I bond fixed rate 1.30% – EE 3.40%
Tuesday, May 1st, 2007
Categorized as: Yesterday's News (old post archive)
The Treasury will lower the fixed interest rates it will pay on Savings Bonds issued during the next six months, it announced this morning.
For Series I Savings Bonds, the fixed base-rate will be 1.30%, down from the previous 1.40%. For Series EE Savings Bonds, the fixed rate will be 3.40%, down from the previous 3.60%.
During their first six-month rate period, I bonds issued beginning today will have a composite rate of 3.74%. The inflation component, which changes every six months for all I bonds, will be 2.42% 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 3.43% for I bonds with the lowest fixed base-rate of 1.00% to a high of 6.06% 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, continues to lag well 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 4.15% during their next six-month rate period.