hypehhical question us Goverment series I bonds lets say 5 years ago inflation was high 20% I bought a !000$?

Question

If I bought a 1000$ I bond when inflation was up 5 years ago and the yeald was %9 now 5 years later inflation is under control and bond rates are %4 for I bonds does the bond I bought 5 years ago still earn %9 or does it go back to todays rates

Answer 1

No they don't still earn 9%. The going interest rate on I-series bonds is changed twice a year to reflect the current interest rate environment, and currently it's at 4.5%.

See the government's savings bonds website below for info.

Answer 2

Hello Art.........Didn't you read the paperwork that came with the savings bond? I don't want to sound cruel Art, it's apparent, by your question, that you don't seem to know much about U.S. Savings Bonds. U.S.Bonds are a financial instrument, by which a person buys the bonds at, or below, the face value, in hopes that they will be worth more when they mature...........in seven(7) years. You can sell them before they mature, usually at a loss. The bonds you have are worth the four(4)% rate, unless you need the money...........I'd hold them. Bonds are a "tricky" way to save.........The Government usually wins out on them.............LATER

Answer 3

earning will remain same based on the purchased price. But if it is sold new owner will get the new rate only.