Comments on: Explaining what happened to I bonds http://www.savings-bond-advisor.com/explaining-what-happened-to-i-bonds/ Sat, 31 Jul 2010 09:21:32 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/explaining-what-happened-to-i-bonds/#comment-339 Thu, 11 May 2006 17:05:16 +0000 http://www.savings-bond-advisor.com/explaining-what-happened-to-i-bonds/#comment-339 Sam - the I bond fixed rate has been as high as 3.6% in short eight years that I bonds have been available, so it's reasonable to assume they'll go that high again. The particular combination of events that would lead to a high fixed rate for I bonds would be high interest rates and low inflation rates. Obviously, the folks who have the 3.6% fixed rate I bonds have done quite well. As of November 2006 - after six months of the 1% inflation component - they'll have a lifetime yield of 6.49% on an investment that carries less risk than anything else you could invest in. Sam - the I bond fixed rate has been as high as 3.6% in short eight years that I bonds have been available, so it's reasonable to assume they'll go that high again.

The particular combination of events that would lead to a high fixed rate for I bonds would be high interest rates and low inflation rates.

Obviously, the folks who have the 3.6% fixed rate I bonds have done quite well. As of November 2006 - after six months of the 1% inflation component - they'll have a lifetime yield of 6.49% on an investment that carries less risk than anything else you could invest in.

]]> by: Sam http://www.savings-bond-advisor.com/explaining-what-happened-to-i-bonds/#comment-337 Thu, 11 May 2006 02:32:55 +0000 http://www.savings-bond-advisor.com/explaining-what-happened-to-i-bonds/#comment-337 Since the fixed rate on the I bond is now the highest it's been in several years, wouldn't that mean these are actually quite attractive as far as long term investments? Do you think the fixed rate could or would go much higher in the near future? Since the fixed rate on the I bond is now the highest it's been in several years, wouldn't that mean these are actually quite attractive as far as long term investments? Do you think the fixed rate could or would go much higher in the near future?

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