"For the first six months you own it, the Series I bond we sell from November 2021 through April 2022 earns interest at an annual rate of 7.12 percent. A new rate will be set every six months based on this bond's fixed rate (0.00 percent) and on inflation."

As someone who's never bought bonds before, how do I know the 7.12% won't change after the 6 months of the locked rate to the 0.00% and whatever pittance they decide to toss my way in an attempt to account for inflation?

Sincere question, I don't know anything about anything.

7.12% is about as low as it's been:

https://treasurydirect.gov/indiv/research/indepth/ibonds/res...

That's not what that chart is saying.

That's the coupon rate paid by a bond bought at that time (in the late 90s the bonds paid a real return of 3%, which when added to the current 7.12% inflation rate gives a nominal return of 10.12% for the next 6-months).

The rate of those bonds was 3.5% just a month ago, and historically averages around 2%.

>The Treasury sells savings bonds that are at 7.12% right now.

source? yields top out at 2.05% right now. https://www.treasury.gov/resource-center/data-chart-center/i...

This is good to know. I wasn't aware of this website. However, you can't live off of 7.12% on a limit of $10k electronic bonds.

I do wish savings accounts still had high interest rates and there wasn't so much incentive to invest in riskier assets like stocks.