First of all, it is possible to earn less than then 1.1% fixed portion of the I bond in the next six months if there is deflation - which has occurred for the first 3 out of 6 months for period considered for the rate change in November. That said, even if the rate earned on the I bond for the 2nd 6 months is 0%, you still earn an annual return of 2.33%. With the EE bonds, based on current trends, lets say the new rate is 2.5% in November (probably not that high). Even if that is the case, you still only ear 1.96% for the year. The primary reason for this is the 2nd 6 month interest is not too important given half is eaten by the penalty and 1/2 of 0 is 0. If this isn't for miles and is for a long-tem investment, I think there is a strong argument to buy the EE right now.