Comments on: Savings I-Bonds Update: New Inflation (err… Deflation) Rate Announced

By: Steven

Steven — Fri, 05 Jun 2009 14:29:41 +0000

I purchased iBonds in Apr 2008. Now that they are not earning interest, I am torn about whether to hold onto them. Short term they are paying nothing so it makes sense to cash them in and put the money where it will earn something. Long term, the government is sending a clear message – they want these bonds cashed in. Why? My guess is they expect inflation to increase substantially and they don’t want to be stuck paying out the higher interest rates these bonds will earn. So I may want to hold onto them to reap those rewards. However, I am reading elsewhere that if the government were to default on anything, it would be TIPS and iBonds. And I have lost trust in the government after their shady maneuver of setting the inflation rate to a large negative number to wipe out the fixed rate of the iBonds. I would like to see a post on this topic or more discussion. If I do cash them in I guess I would want to wait until July 2009 so that my last 3 months of interest would be $0. Maybe I will cash in half of them.

By: Jeremy

Jeremy — Fri, 01 May 2009 18:13:32 +0000

.1 % fixed rate?!? So much for my plan to wait for the big jump in the fixed rate…

By: Bryan

Bryan — Fri, 24 Apr 2009 04:31:35 +0000

I’m still confused a bit. . .If I were to buy an I bond today, then I will always receive that .7% amount for 30 years? Then whatever the adjusted inflation rate is, which will change twice every year, will be the other interest rate determining factor??

By: Clayon W.

Clayon W. — Fri, 17 Apr 2009 14:01:32 +0000

I applied for a treasury direct account (TD), and like some of you, I had to send in an authorization form. I hope to receive my access card prior to the close of the month, because I want to lock in the 3.08% interest rate!

What’s the procedure for funding my TD account? Must I wait for the three or so day ACH transfer to occur between my bank and TD before I can purchase I bonds, or will treasury allow me to buy bonds before a transfer I initiate completes?

I mailed my authorization form on Apr 16, so I’m holding out hope I’ll receive my access card in time.

By: Matt

Matt — Fri, 17 Apr 2009 12:50:44 +0000

I’m confused… Wouldn’t you only get the 5.64% for 1 month in this scenario? Then in May the variable rate changes and yield effectively goes to 0% until November when another reset happens?

By: Terry

Terry — Thu, 16 Apr 2009 20:51:22 +0000

High Yield Bonds (ETF) pay 9-13%, buy if you think the US economy is improving. Some to watch HYG,JNK,PHB. HYG up 11% in last 100 days.
Buy and sell any hour of trading day,with brokerage account.
Not for everyone.

By: Sean

Sean — Thu, 16 Apr 2009 15:15:52 +0000

For anyone that bought in April 2008, it is probably best to sell them in January 2010, right after you get your last interest payment under the inflationary variable rate.

By: Cee

Cee — Thu, 16 Apr 2009 14:55:43 +0000

I want to buy these bonds for my kids, but from reading about what Jim wrote about financial aid, should the kids be either beneficiary or co-owner?

By: Tony

Tony — Thu, 16 Apr 2009 12:28:34 +0000

Nice update. I bonds are a great savings tool for college education, general savings, etc. They were helpful in paying for my duaghters college education. I keep about 25% of my emergency fund in a few old EE Bonds and I bonds. What’s even more “exciting” is having bonds that are paying an interest rate of 8.67%, and great many over 6.4%. You can’t be that return anywhere, and probably for the foreseeable future! The best part is all the comments I would receive about buying savings bonds, “waste of money”, “bad returns”…..etc, from friends. They are not laughing at me now.

Jonathan, your web site is great, please keep up the great work.

By: Eric

Eric — Thu, 16 Apr 2009 05:45:28 +0000

Thank god we bought our I-Bonds earlier huh Jonathan? What’s the update on our I-bonds anyways? What’s the rate for us?

By: I-Bond Update « Family Money Today

I-Bond Update « Family Money Today — Thu, 16 Apr 2009 04:04:17 +0000

[...] The Money Blog does a real good update on the status of I-Bond interest rates coming up. Long story short, you’re looking at 5.55% for the next 6 months, and after that probably 0%. [...]

By: Hogan

Hogan — Thu, 16 Apr 2009 03:51:37 +0000

Great ibond update. I find this very useful.

By: Dan

Dan — Wed, 15 Apr 2009 23:57:11 +0000

Thanks. I think maybe I will put $1000-2000 here instead of in the GMAC 1-year CD at 2.65% that I was planning for.

By: Sandy

Sandy — Wed, 15 Apr 2009 22:45:53 +0000

Forget about my previous question. I thought I can buy an iBond from any banks/brokerage acct/ etc, but found out that it is sold only at treasury site or something. hehe Btw, your site is fascinating…

By: sandy

sandy — Wed, 15 Apr 2009 22:34:58 +0000

Where can i get iBond? I have an acct with Scottrade, can I buy this from Scottrade?

By: Jonathan

Jonathan — Wed, 15 Apr 2009 22:23:25 +0000

Yes, you are both correct. Sorry, I was working off a post from six months ago and overlooked that one.

By: typo

typo — Wed, 15 Apr 2009 18:51:14 +0000

I believe:

“If you buy before the end of October, the fixed rate portion of I-Bonds will be 0.7%.”

should be:

end of April…

By: Bob Jones

Bob Jones — Wed, 15 Apr 2009 18:48:07 +0000

Minor typo: Should it by “If you buy before the end of April” instead of October?

By: Jim

Jim — Wed, 15 Apr 2009 18:40:22 +0000

Dhiraj, If you have a chance of getting financial aid then its better to have the money in the parents name. If you put money in your childs name then it will count worse against them when financial aid is figured.

By: Dhiraj

Dhiraj — Wed, 15 Apr 2009 18:18:43 +0000

Is this is a good alternative to 529 for Childs education…?? Can I keep that money in my child’s name…?