Treasury I bond rates poised to slide in November

The Treasury Department’s popular inflation-protected I-bonds won’t pay that much when the rate changes on November 1, so buying them now is a better bet.

The rate will be at least 6.48%, according to estimates by Ken Tumin, senior industry analyst at Lending Tree and founder of, down from the current 9.62% offered by the bonds through the end of October. The rate applies during the first six months of holding the bond.

According to Treasury data, this is the second highest rate since November 2005, when the composite rate was 6.73%, and the seventh highest since the bond was introduced in 1998. But if inflation slows down quickly over the next six months, the bond will not be worth as much.

“For the November I bond purchases, we can only know the bond I inflation rate for the first six months. We won’t be able to accurately estimate the May I bond inflation rate until mid-April 2023, “Tumin said.” It’s possible that the inflation rate is much lower. So link I will look much less attractive, like it was before 2021 “.

(Photo credit: Getty Creative_

How the fare is calculated

The composite rate for securities I is composed of a fixed rate and a semi-annual inflation rate calculated using a formula based on the six-month change in the non-seasonally adjusted consumer price index for all urban consumers (CPI-U) for all articles.

Then, these two rates are integrated into the following formula to get the compound rate:


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