I Bond Rate
    The latest information on I Bonds and I Bond rates
Home Forums Newsletter
   Articles
I-Bond Rate
I-Bond Fixed Rate History
I-Bond Variable Rate History
I-Bond Rate Calculation
I Bond Tax Advantages
Who Is On I Bonds
$50 Helen Keller I Bond
$75 Hector Garcia I Bond
$100 Martin Luther King I Bond
$200 Chief Joseph I Bond
$500 George Marshall I Bond
$1000 Albert Einstein I Bond
$5000 Marian Anderson I Bond
$10000 Spark Matsunaga I Bond

I-Bond Rate Calculation

The I-bond rate is calcualted using a combination of the fixed rate (currently 1.00%) and a semi-annual variable inflation rate (currently 2.85%). These together make the I-bond's interest rate.



This is how the composite rate for I-bonds issued from May 2008 through October 2008 was calculated:

Fixed rate = 0.00%
Semiannual inflation rate = 2.42%

Composite rate = [Fixed rate + (2 x Semiannual inflation rate) + (Fixed rate x Semiannual inflation rate)]
Composite rate = [0.000 + (2 x 0.0242) + (0.0000 x 0.0242)]
Composite rate = [0.000 + 0.0484 + 0.0000000]
Composite rate = [0.0484]
Composite rate = 0.0484
Composite rate = 4.84%

Next: I Bond Tax Advantages
 
 Partner Pages
Google
 
Web This Site