But with the inflation rate rising and the stock market shaky, even the most optimistic investors are finding it hard to be cheerful. Unless, that is, they own inflation-adjusted Savings Bonds, or I Bonds.

Print page

I Bond vs. CD Rates

Short-term Certificates of Deposit (CDs) are the safe investment with which most investors are familiar, but the tax-deferred, inflation-linked I Bond may be a better option for some.

Initial Rate Comparison

This chart shows the difference between the I Bond rate and the 6-month Certificate of Deposit (CD) Secondary Market rate at that time for the period of September 1998 to June 2010.

Purchase dateCD RateI Bond Rate
9/1/19985.334.66
10/1/19984.99 
11/1/19985.075.05
12/1/19985.01 
1/1/19994.9 
2/1/19994.95 
3/1/19994.98 
4/1/19994.94 
5/1/19995.035.05
6/1/19995.31 
7/1/19995.58 
8/1/19995.83 
9/1/19995.89 
10/1/19996.04 
11/1/19995.976.98
12/1/19996.07 
1/1/20006.15 
2/1/20006.26 
3/1/20006.36 
4/1/20006.5 
5/1/20006.947.49
6/1/20006.91 
7/1/20006.86 
8/1/20006.76 
9/1/20006.68 
10/1/20006.65 
11/1/20006.636.49
12/1/20006.3 
1/1/20015.45 
2/1/20015.12 
3/1/20014.74 
4/1/20014.41 
5/1/20014.015.92
6/1/20013.74 
7/1/20013.7 
8/1/20013.49 
9/1/20012.84 
10/1/20012.26 
11/1/20012.034.40
12/1/20011.9 
1/1/20021.85 
2/1/20021.95 
3/1/20022.16 
4/1/20022.11 
5/1/20021.932.57
6/1/20021.92 
7/1/20021.84 
8/1/20021.72 
9/1/20021.74 
10/1/20021.69 
11/1/20021.44.08
12/1/20021.36 
1/1/20031.3 
2/1/20031.27 
3/1/20031.2 
4/1/20031.23 
5/1/20031.194.66
6/1/20031.02 
7/1/20031.06 
8/1/20031.13 
9/1/20031.13 
10/1/20031.14 
11/1/20031.172.19
12/1/20031.17 
1/1/20041.12 
2/1/20041.11 
3/1/20041.09 
4/1/20041.21 
5/1/20041.463.39
6/1/20041.76 
7/1/20041.85 
8/1/20041.89 
9/1/20042.04 
10/1/20042.18 
11/1/20042.463.67
12/1/20042.66 
1/1/20052.85 
2/1/20053 
3/1/20053.23 
4/1/20053.34 
5/1/20053.444.80
6/1/20053.56 
7/1/20053.8 
8/1/20053.99 
9/1/20054.01 
10/1/20054.32 
11/1/20054.526.73
12/1/20054.62 
1/1/20064.69 
2/1/20064.88 
3/1/20065.01 
4/1/20065.17 
5/1/20065.252.41
6/1/20065.46 
7/1/20065.54 
8/1/20065.44 
9/1/20065.37 
10/1/20065.35 
11/1/20065.334.52
12/1/20065.31 
1/1/20075.34 
2/1/20075.34 
3/1/20075.28 
4/1/20075.31 
5/1/20075.323.74
6/1/20075.36 
7/1/20075.34 
8/1/20075.4 
9/1/20075.33 
10/1/20075 
11/1/20074.854.28
12/1/20074.85 
1/1/20083.71 
2/1/20082.99 
3/1/20082.7 
4/1/20082.86 
5/1/20082.844.84
6/1/20083.09 
7/1/20083.13 
8/1/20083.11 
9/1/20083.82 
10/1/20084.37 
11/1/20082.835.64
12/1/20082.18 
1/1/20091.53 
2/1/20091.75 
3/1/20091.76 
4/1/20091.54 
5/1/20091.040.00
6/1/20090.67 
7/1/20090.5 
8/1/20090.44 
9/1/20090.36 
10/1/20090.31 
11/1/20090.33.36
12/1/20090.3 
1/1/20100.29 
2/1/20100.3 
3/1/20100.34 
4/1/20100.42 
5/1/20100.641.74
6/1/20100.75 


References

  1. The Federal Reserve System. Federal Reserve Statistical Release. Selected Interest Rates. http://www.federalreserve.gov/releases/H15/data.htm. Accessed July 21, 2010.
Page last modified 1/16/2012