Comments on: Savings Bond Alert #029 http://www.savings-bond-advisor.com/savings-bond-alert-029/ Wed, 03 Dec 2008 22:33:33 +0000 http://wordpress.org/?v=2.0.4 by: Mario http://www.savings-bond-advisor.com/savings-bond-alert-029/#comment-3048 Thu, 19 Apr 2007 01:32:14 +0000 http://www.savings-bond-advisor.com/savings-bond-alert-029/#comment-3048 The Federal Reserve's FRED database has a lot of interest rate information here, many series having decades worth of data: http://research.stlouisfed.org/fred2/categories/22 It includes CDs, although only up to 6-month. I-bonds are probably more comparable to longer rates, such as 5-10 year T-bonds. I believe bankrate also has CD rate charts but for a much shorter time, about 5 years as Tom mentioned. One way to do this comparison would be similar to the "stock market comparison charts" you show, i.e. compounding the value of $1 invested in CDs and I bonds over time. (I'd be interested in this too - my impression is that I bonds were very comparable to CD rates about 4-5 years ago, but have not been so competitive since.) The Federal Reserve's FRED database has a lot of interest rate information here, many series having decades worth of data:

http://research.stlouisfed.org/fred2/categories/22

It includes CDs, although only up to 6-month. I-bonds are probably more comparable to longer rates, such as 5-10 year T-bonds. I believe bankrate also has CD rate charts but for a much shorter time, about 5 years as Tom mentioned.

One way to do this comparison would be similar to the "stock market comparison charts" you show, i.e. compounding the value of $1 invested in CDs and I bonds over time. (I'd be interested in this too - my impression is that I bonds were very comparable to CD rates about 4-5 years ago, but have not been so competitive since.)

]]> by: Tom Adams http://www.savings-bond-advisor.com/savings-bond-alert-029/#comment-3033 Wed, 18 Apr 2007 13:58:09 +0000 http://www.savings-bond-advisor.com/savings-bond-alert-029/#comment-3033 Ken - there may be some way to draw the graph you want to see, but I haven't yet figured out what it is. Because I bond rates change while you hold the investment and CD rates don't, this is a difficult comparison to do. In addition, I don't know of any statistical series on CD rates that goes back more than five years, though if anyone else does I'd be happy to look at it. Tom Adams Ken - there may be some way to draw the graph you want to see, but I haven't yet figured out what it is.

Because I bond rates change while you hold the investment and CD rates don't, this is a difficult comparison to do.

In addition, I don't know of any statistical series on CD rates that goes back more than five years, though if anyone else does I'd be happy to look at it.

Tom Adams

]]> by: Ken http://www.savings-bond-advisor.com/savings-bond-alert-029/#comment-3020 Tue, 17 Apr 2007 22:59:59 +0000 http://www.savings-bond-advisor.com/savings-bond-alert-029/#comment-3020 How about plotting the average CD rates with the I-bond rates over the last 7 years? That would be interesting and may help with predictions of future base rates. How about plotting the average CD rates with the I-bond rates over the last 7 years? That would be interesting and may help with predictions of future base rates.

]]> by: Jon Gutek http://www.savings-bond-advisor.com/savings-bond-alert-029/#comment-3018 Tue, 17 Apr 2007 20:06:07 +0000 http://www.savings-bond-advisor.com/savings-bond-alert-029/#comment-3018 Tom: Your explanation regarding the possible base rate at May 1 is well reasoned, well explained, and greatly appreciated. I am sure that I am not the only one who has to decide when to use up my annual limitation amount; i.e., do I buy before May 1 or after? Thank you for all your hard work. Tom: Your explanation regarding the possible base rate at May 1 is well reasoned, well explained, and greatly appreciated. I am sure that I am not the only one who has to decide when to use up my annual limitation amount; i.e., do I buy before May 1 or after? Thank you for all your hard work.

]]> by: Mike Occhialini http://www.savings-bond-advisor.com/savings-bond-alert-029/#comment-3017 Tue, 17 Apr 2007 19:11:44 +0000 http://www.savings-bond-advisor.com/savings-bond-alert-029/#comment-3017 Tom - thanks for the timely update and commentary. Your Savings Bond Alert has taken a lot of the suprise out of May and November for me. Please keep up the good work... and see what you can do about that I-bond base-rate. Tom - thanks for the timely update and commentary. Your Savings Bond Alert has taken a lot of the suprise out of May and November for me. Please keep up the good work… and see what you can do about that I-bond base-rate.

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