Well, it took me nearly six months to take my own advice, but… I logged into TreasuryDirect last night and bought some Series I Savings Bonds. We were initially delayed by some snags in setting up my wife’s account, and then time simply got away from us.
I was finally prompted to act by news that the variable portion of the interest rate will be dropping from 3.06% to 1.54% in May. The fixed portion currently stands at 0.30%, so we’ll be locked in at the current rate of 3.36% for the next six months, followed by six months at 1.84% (0.3% plus 1.54%), followed by… Who knows?
It’s unclear what will be happening with the fixed portion of the rate, but the general consensus is that it won’t be moving too much. We’ll just have to wait and see. Hopefully they won’t spike, making me regret pulling the trigger now instead of ten days from now.
The next step will be to swing by the bank and buy our allotment of paper bonds. For those that are unaware, the Treasury limits savings bonds purchases to $5k per person in both electronic and paper form per calendar year, or a total of $10k per person through the two channels combined.