New series "I" savings bond rates

[RWG1950]

The Treasury dept has announced the new annualized 6 mo. rate on I-bonds to be 4.28% for "new money" invested during
the six month period of 5-1 thru 10-31, 2024. This includes a fixed rate of 1.30% and 2.98% for the inflation adjusted component.
You can learn more about I-bonds at TREASURYDIRECT.GOV

[Rapid Robert]

Cool. That's almost exactly the rate I recently got on a small (less than $10K) eight-month CD at my local credit union. What I like about I-bonds compared to CDs is that I don't have to go through that ridiculous dance with the bank every time they mature, where you have a "grace period" to find another offer to roll the money into, otherwise they automatically renew it at a tiny rate for an inconvenient period. And you can't do it online, at least not at any of the major banks I deal with (and the CU). With I-bonds, they give me their best rate automatically every six months, not their worst rate at arbitrary periods.

edit: by "best rate", I understand that the fix rate component does not change over the holding period of the I-bond. Somehow based on recent discussions here, I have the impression that the current 1.3% fixed rate is decent, on a historical scale.

[FEDUKE404]

The I-bonds are essentially a 30-year note with some bells & whistles and some strings attached. And, of course, the total payout rate changes every six months.

I continue to use Treasury Direct to purchase mainly T-bills (up to one year in length). A couple of mouse clicks to purchase, and that's it. NO further action re purchase payment / maturity distribution is necessary on my part. Should you wish to do so, you can select the "reinvest at maturity" option. Current KNOWN APY rates are likely in the 5.3% range.

AND the income is exempt from state taxation.