I Bonds Bought From May Through October 1999 To Earn 3.3% Over And Above Inflation
FOR IMMEDIATE RELEASE
May 3, 1999
Series I, inflation-indexed savings bonds purchased from May through October 1999 will earn a 3.3 percent fixed rate of return over and above inflation. The 3.3 percent fixed rate applies for the 30-year life of I Bonds purchased during this six-month period.
Treasury's inflation-indexed I Bonds are designed to offer all Americans a way to save that protects the purchasing power of their investment by assuring them a real rate of return over and above inflation. I Bonds have features that make them attractive to many investors. They are sold at face value in denominations of $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000 and earn interest for as long as 30 years. Two new denominations, a $200 bond honoring Chief Joseph of the Nez Perce, and a $10,000 bond, honoring Senator Spark Matsunaga went on sale May 1, 1999. I Bond earnings are added every month and interest is compounded semiannually. They are State and local income tax exempt, and Federal income tax on I Bond earnings can be deferred until the bonds are cashed or they stop earning interest after 30 years. Investors cashing I Bonds before five years are subject to a 3-month earnings penalty.
I BOND EARNINGS RATE: 5.05%
The earnings rate for I Bonds is a combination of a fixed rate, which will apply for the life of the bond, and the inflation rate. The 5.05 percent earnings rate for I Bonds bought from May through October 1999 will apply for the first six months after their issue. The earnings rate combines the 3.30 percent fixed rate of return with the 1.72 percent annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The CPI-U increased from 163.6 to 165.0 from September 1998 to March 1999, a six-month increase of 0.86 percent.
EARNINGS RATES FOR ALL I BONDS
Earnings rates and actual yields for I Bonds are shown in the I Bond Earnings Report.
MORE INFORMATION
Get the latest information about I Bonds and Series EE bonds at Public Debt's savings bond website at www.savingsbonds.gov. Download the new Savings Bond Wizard version 2.01, a free easy-to-use program that lets you keep track of all your savings bonds, calculate the value of your portfolio, and more. The latest United States Savings Bonds/Notes Earnings Report, containing rate and yield information for Series E, EE and I bonds along with Savings Notes, is also available at the website or by mail. Send a postcard asking for the “Earnings Report” to the Bureau of the Public Debt, 200 Third Street, Parkersburg, WV 26106-1328.