Sunday, May 22, 2005
I-Bonds are at 4.8%
You have to hold them for at least a year, and you'll pay a 3 month interest penalty if you cash them before 5 years. But compared to the best 12 month CD rate I've found at 4.2%, which required opening a new bank account and paying bank fees, 4.8% and the terms are pretty good. If rates are higher after a year, it comes to a 1.2% penalty to get out at 12 months, so the APY would then be 3.6. The move-to rate would have to be at least 6.0% for this to be a sensible move. Seems like a decent place to stick cash.
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2 comments:
I-flation is at 3.6% !
That is NOT a figure I've seen bandied about. That is a BIG number!
(I know how you can get 10% return on an I bond...)
Yep. Did a search on US current inflation: the feds just took action, say it is "contained": I don't think so. The interest rates have risen for the last 6 months: the June figures will tell the story.
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