New savings bonds earning a rate of 2.2 percent

The Bureau of Public Debt announced the new rates on savings bonds.

The Series I Bonds purchased today through October of this year will have an annualized rate of 2.2 percent for the first six months of purchase. That compares with an annualized rate of 3.06 percent for new bonds purchased in the previous six months.

The I Bond, an inflation protection bond, offers a fixed rate for the life of the bond, and a semi-annual rate that goes up and down based on inflation. The fixed rate is 0 percent. Yeah, that’s right, zero. So all you earn is a rate based on inflation, which will vary over the 30-year life of the bond.

New Series EE bonds purchased between now and the end of October will carry a fixed rate for the life of the bond of 0.6 percent.

Of course, savers will lament the low rates being offered. But the lower the rate, the better for taxpayers. Because we pay the interest on the bonds that raise money to run our government.