Your last chance to secure 9.62% annual interest for Series I bonds is Oct. 28

cnbc.com

Your last chance to secure 9.62% annual interest for Series I bonds is Oct. 28

How to estimate I bond rates for one year

There are two parts to I bond rates : a fixed rate, which stays the same after purchase, and a variable rate, which shifts twice per year based on inflation. The U.S. Department of the Treasury announces new rates every May and November, and you can estimate the next variable rate about two weeks before from the consumer price index reports released in April and October . The estimates offer a brief period to know roughly what you’ll earn for one year , which is how long you’ll lose access to the funds after buying.”It’s nice to know what interest rates you will get when you’re committing to a 12-month lockup,” said Jeremy Keil , a certified financial planner with Keil Financial Partners in Milwaukee. While it’s too early to estimate rates for May 2023, buying I bonds before the end of October means you’ll receive the May and November rates for six months each. “There’s no doubt that it’s better to get the 9.62% for the first six months, and then 6.48% for six months,” said David Enna, founder of Tipswatch.com, a website that tracks I bond rates .”A short-term investor — somebody just wanting to put away cash — should definitely buy in October ,” he said. However, if you’re trying to secure the 9.62% rate before November, Enna suggests making the purchase no later than a few business days before the end of October .While roughly knowing I bond rates for one year may be appealing, there are a few things to consider before buying, experts say. “The biggest downside is you are locked in for 12 months,” Keil said. “You cannot take it out for any reason.” And you’ll give up three months of interest by cashing in before five year s.