Comments on: I bond fixed rate drops a bit, EE bond rate drops more

by: Tom Adams

Mon, 03 Dec 2007 15:16:26 +0000

Hi Ted - I agree. Lots of the big-boy money is moving into Treasury securities right now in a flight to safety. You can see it in the way TIPS rates have dropped the last month in the chart on this page.

The Savings Bonds rates already look a lot better than they did on Nov 1.

Tom Adams

by: Ted

Mon, 03 Dec 2007 01:09:38 +0000

While it is true that certain bank products offer better rates of return, they also offer risk of default, unlike savings bonds. For example, the so-called money market funds with which so many are chasing higher returns are not FDIC insured and in this unprecedented market environment today, as unlikely as it sounds, may "break the buck" price wise. There is a place in any portfolio for treasury products.

by: Freda

Tue, 06 Nov 2007 04:31:48 +0000

Savings Bonds are now so uncompetitive with bank products. Guess Treasury doesn't really care about further drops in bond investments…

by: Weiwen

Mon, 05 Nov 2007 07:18:01 +0000

If I'd only known, I'd have bought I-bonds when the fixed rates were over 3%. I know it's not the Treasury's job to look out for consumers (their job is to raise funds), but they aren't offering a good deal here, and the tax advantages aren't enough to compensate. I'd rather own stocks and a TIPS fund in a tax-deferred account.

by: stan senuta

Sat, 03 Nov 2007 03:45:13 +0000

They can keep them. I need a investment that will keep up with Main street inflation not Wall street inflation. Its the so called volatile stuff that hurts the average Joe, not the price of imported toys from China. Stocks & bonds don't have to eat or drive to & from work.