New I-Bond Rate 3.79-4.40%, 5/1/23 (Estimated, 4/12/23)

yogibearbull

Fixed rate 0.40-1.00%
Semiannual inflation 1.694% (Unadjusted CPI 6-mo change from Sep-Mar)
Composite rate = 3.79-4.40 %
(Current rate of 6.89% valid for purchases until 4/28/23)
https://ybbpersonalfinance.proboards.com/post/1006/thread

LewisBraham

I've been wondering what the new I-Bond fixed rate will be this May too. I expect higher, but by how much?

yogibearbull

I used a wide range for fixed rate (0.40-1.00%). The current fixed rate of 0.40% should go up. But with 5-yr TIPS at 1.18%, 1.00% sounds generous. So, the range of 3.79-4.40% for the combined rate is solid.

LewisBraham

Here's some interesting analysis: https://tipswatch.com/2023/03/09/i-bonds-lets-handicap-the-may-fixed-rate-reset/

sma3

Great article. Just learned about “gift box”

Am I correct that each spouse can buy $10,000 for their individual account and gift $10,000 ,to each other in a gift box, but not deliver the gift until next year to stay under the $10,000 annual limit?

yogibearbull

Yes, next year or whenever. See gift I-Bonds here, https://ybbpersonalfinance.proboards.com/post/577/thread