But even if inflation slows, the Series I bond still beats bank CDs, said Ken Tumin, an Austin-based financial writer and author of DepositAccounts.com, a popular blog that lists deposit rates from banks and credit unions across the country.
"Currently, the best one-year bank CD yield is only 1.4 percent," Tumin
Rising gasoline and food prices have a major impact on the CPI, which had a six-month increase of 2.3 percent, Tumin
"The previous I bond six-month rate was just 0.37 percent," he
"It actually went negative in 2009 after the 2008 financial crisis."
figures an investor buying a Series I bond this month won't do worse than 2.3 percent for the following 12 months and will likely do better.
Here's the math:
doesn't think the next six-month rate will be zero.
"Most likely that November rate will be around 2 percent," Tumin
Smart Money agrees with Tumin
"For small investors looking for a safe, short-term return, Series I bonds are again a good deal," Tumin