Comments on: Series I Savings Bonds Now Paying 3.36%

By: Tim

Tim — Thu, 21 Jan 2010 07:44:55 +0000

o.k. so they are at 3.36%..now is that 3.36% every 6 months or 3.36% over 30 yrs ?

By: Michael Harr @ TodayForward.com

Michael Harr @ TodayForward.com — Fri, 06 Nov 2009 02:11:48 +0000

Sheeeeeeeeeeit! I forgot about the paper.

By: Nickel

Nickel — Thu, 05 Nov 2009 18:42:47 +0000

Michael: It’s actually $5k electronic and $5k paper each year (per SSN), so $10k. Still not great, but better.

By: Michael Harr @ TodayForward

Michael Harr @ TodayForward — Thu, 05 Nov 2009 16:23:05 +0000

@Nickel – We love the I Bonds…perhaps the best built financial instrument for emergency funds and cash reserves. The only thing that stinks is you can only buy $5,000/year per social security number.

By the way, barring a significant interest rate hike in the next couple of months on savings/money market accounts, I Bonds (even after yielding ZERO for half of the year) will outpace the overwhelming majority of bank or mutual fund based money market and savings accounts.

The way I see it, I Bonds are a nearly perfect vehicle for cash reserves. As an added bonus, there is no need to chase rates at banks because the rate will always keep up with inflation.

Also, the real return (net of inflation) on these bonds has been terrific this year.

By: Nickel

Nickel — Thu, 05 Nov 2009 02:50:37 +0000

Patty: Yep, that makes the deal even more attractive.

By: Patty

Patty — Thu, 05 Nov 2009 02:18:30 +0000

Let’s not forget, the interest earned on US bonds, when received, is not taxed by the States. That adds to the rate of return.

By: Eric

Eric — Thu, 05 Nov 2009 01:26:46 +0000

Yeah you should totally write more about them. I bought some back when the fixed rate was higher. Didn’t do well the last 6 months but they’re doing well overall.