# What Will the I-Bond Interest Rate Be in November 2022?

Let's go over how you can project I-bond rates based on semi-annual CPI estimates.
• Author:
• Publish date:

I Bond Interest Rate November 2022 Prediction

Assuming a base fixed rate of 0%, the formula for the next I-bond rate is ((September CPI-U Minus March CPI-U) Divided by March CPI-U) * 2.

DNE estimates a whopping 12.4% annualized yield. I arrive at 7.9%.

The difference is in CPI projections. DNE assumed 1.0% inflation for July, August, and September.

We already know July was 0.0% (technically slightly negative).

The Cleveland Fed projects 0.09% month-over-month inflation for August.  My assumption based on utilities and rent, with gasoline mostly flat is 0.40%.

For lack of a better number, I used 0.40% for September as well.

Mish vs DNE CPI Projections

July (subject to revision) is a known value. Tacking on 0.40 percent to July and then again for August yields a CPI-U of 298.851.

Plugging that into the lead chart formula gets an annualized yield of 7.9%. That far under DNE's calculation but a very nice yield that everyone should take advantage of.

Scroll to Continue

## RECOMMENDED ARTICLES

I-Bond Details

• The limit for purchasing I-bonds is per person, so a married couple can each put up to \$10,000 in the investment annually, or up to \$15,000 each if they both also elect to get tax refunds in paper I-bonds.
• Also, you can purchase I bonds for each child and if you have a trust, the trust can buy them.
• An investor must hold the bonds for 12 months, and if they sell the bonds before five years, they lose three months of interest.
• You must hold the bonds for 5 years to collect all of the interest and the rates will change semi-annually.

Treasury Direct has more details on Buying Series I Savings Bonds

In a calendar year, you can acquire:

• up to \$10,000 in electronic I bonds in TreasuryDirect
• up to \$5,000 in paper I bonds using your federal income tax refund

Is it worth the hassle given the above limits?

I think not and they make great gifts. But hassle is in the eyes of the beholder.

This post originated at MishTalk.Com