Quote:
Originally Posted by rmd2
Does anyone know the answer to this question?
If I buy a US Treasury I Bond will the interest rate ever vary during the term I have the Bond? I Bonds are made up of a fixed interest rate and a variable interest rate based on inflation. If I already have an I Bond and the inflation goes down will the interest rate on the I Bond I already have also go down or does it stay the same for the full term of the bond?
Also are there any costs like buy, sell or manage etc associated with having I Bonds?
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The interest rate for an I Bond" resets" every 6 months based on inflation. For comparison the rate on a 30 year conventional fixed rate Treasury Bond is currently about 3% less at 4%. A new auction for these bonds is held once/month.
No fees are involved if you buy directly from the US Treasury or companies like Charles Schwab.
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