US govt I bonds might be a good investment now.

[JohnSJ]

1. There are two parts to i-bonds. An inflation part, and a fixed part.

he interest rate combines two separate rates:

A fixed rate of return, which remains the same throughout the life of the I bond, and a variable semiannual inflation rate based on changes in the CPI, which changes every six months.

That 9.62% rate is only available through October, 2022

Maximum purchase:

Electronic: $10,000, total, each calendar year

Paper: $5,000, total, each calendar year


Minimum term of ownership: 1 year
Interest-earning period: 30 years or until you cash them, whichever comes first
Early redemption penalties:
Before 5 years, forfeit interest from the previous 3 months
After 5 years, no penalty
Interest is compounded semiannually

https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm

Example:

The composite rate for I bonds issued from May 2022 through October 2022 is 9.62%
Here's how we set that composite rate:

Fixed rate

0.00%

Semiannual inflation rate

4.81%

Composite rate = [fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate)]



[0.0000 + (2 x 0.0481) + (0.0000 x 0.0481)]

Composite rate

[0.0000 + 0.0962 + 0.0000000]

Composite rate


0.0962000

Composite rate



0.09620

Composite rate



9.62%

https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm#now