I was hoping that the Treasury would give responsible savers a little bit of good news by issuing a respectable fixed rate on the Series I Savings Bonds today. No luck. The new fixed rate is a pathetic 0.10%. The inflation component is now -5.56% which was already known on April 15th. This results in a new composite rate of zero percent. The composite rate is typically the sum of the fixed rate and the inflation component, but since the composite rate can't go below zero, it's just zero percent.
Unfortunately, all previouslly issued I Bonds will also be zero percent for 6 months. Refer to my previous post to see when your I Bond will start the 6-month period of 0% interest. The old I Bonds with high fixed rates are still good deals even with this 6-month period. When inflation returns, the rates will look much better.