Comments on: Savings Bond Alert #026

by: Tom Adams

Thu, 30 Nov 2006 14:44:26 +0000

Elizabeth - from an historical perspective, I bonds have outperformed EE bonds ever since they were introduced in 1998. I don't see any reason at this time to think things have changed.

Tom Adams

by: Elizabeth Hapeman

Thu, 30 Nov 2006 03:04:15 +0000

Tom,
Would like to purchase 3 bonds on 11-30-06. Would you recomment EE or I bonds. Am thinking I bonds.

Elizabeth

by: Emil Addesa

Mon, 20 Nov 2006 22:41:22 +0000

Tom:

Wow, Thanks for the quick response. I will keep it.

by: Tom Adams

Mon, 20 Nov 2006 21:22:38 +0000

Emil - I bonds have a fixed rate that's permanent and an inflation component that changes every six months, starting from the issue month of your I bond. So in your case, your October 2001 I bond has a fixed base-rate of 3.00% and it earns the current inflation rate on top of that. Your rate is adjusted for inflation every April and October. It's a keeper!

For complete details, see How Series I Savings Bond interest rates work.

by: Emil Addesa

Mon, 20 Nov 2006 19:04:44 +0000

Tom.

I am a little confused. If I purchased an I Bond in Oct 2001 with a 3% inflation rate, does that rate change every 3 months. I originally thought that the inflation rate was permanent and would not change.??Was?I wrong??

by: Tom Adams

Fri, 03 Nov 2006 15:46:00 +0000

Mario - all true, but the political climate was different and the levers of power were in the hands of people with a different philosophy then.

For many of the decades after World War II, political power was aimed at reducing the gap between the people at the top and everyone else.

Now the politicians are helping the folks at the top to skyrocket away from everyone else.

These things run in cycles and we're probably at the peak of this cycle now.