Comments on: How Series I Savings Bond interest rates work http://www.savings-bond-advisor.com/series-i-interest-rate-rules/ Sun, 14 Mar 2010 21:09:25 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/series-i-interest-rate-rules/#comment-60511 Mon, 01 Mar 2010 15:27:32 +0000 http://www.savings-bond-advisor.com/series-i-interest-rate-rules/#comment-60511 Connie - the older bond is more than five years old, so there's no penalty for cashing it. The newer bonds are less than five years old. They are now earning interest after six months of zero earnings, but the earnings don't show up because if you cash the bond you lose the most recent three months interest. Savings Bond calculators all show a bond's actual redemption value (after the penalty has been subtracted from the value). This is all pretty hard to understand, but I can assure you they're doing the calculations correctly. You'll see the growth resume three months after the zero rate period ends. Tom Adams Connie - the older bond is more than five years old, so there's no penalty for cashing it.

The newer bonds are less than five years old. They are now earning interest after six months of zero earnings, but the earnings don't show up because if you cash the bond you lose the most recent three months interest.

Savings Bond calculators all show a bond's actual redemption value (after the penalty has been subtracted from the value).

This is all pretty hard to understand, but I can assure you they're doing the calculations correctly. You'll see the growth resume three months after the zero rate period ends.

Tom Adams

]]> by: Connie http://www.savings-bond-advisor.com/series-i-interest-rate-rules/#comment-60471 Mon, 01 Mar 2010 12:20:59 +0000 http://www.savings-bond-advisor.com/series-i-interest-rate-rules/#comment-60471 Hi Tom, I purchase I bonds every year. The I bonds I purchased in Jan 2002 show an increase in value this month over last, however bonds I purchased in Jan 2006 & 2007 do not show any change in value from last month. If they were all purchased in the month of January why are they not all showing an increase in value? Hi Tom,
I purchase I bonds every year. The I bonds I purchased in Jan 2002 show an increase in value this month over last, however bonds I purchased in Jan 2006 & 2007 do not show any change in value from last month. If they were all purchased in the month of January why are they not all showing an increase in value?

]]> by: Norm Ross http://www.savings-bond-advisor.com/series-i-interest-rate-rules/#comment-49823 Mon, 19 Oct 2009 03:21:46 +0000 http://www.savings-bond-advisor.com/series-i-interest-rate-rules/#comment-49823 Tom Adams: Thanks for the simple answer. Appreciate it. Norm Ross Tom Adams:

Thanks for the simple answer. Appreciate it.

Norm Ross

]]> by: Tom Adams http://www.savings-bond-advisor.com/series-i-interest-rate-rules/#comment-49543 Wed, 14 Oct 2009 15:15:12 +0000 http://www.savings-bond-advisor.com/series-i-interest-rate-rules/#comment-49543 Norm - in the text above, read the section called <i>I bond composite rates</i>, paying particular attention to the paragraph after the bullets that begins, "In the event the inflation rate is negative..." For the record, the inflation rate currently being used to calculate I bonds rates is -5.56%. <a href="http://www.savings-bond-advisor.com/new-i-bond-fixed-rate-010-ee-070/" rel="nofollow">This was announced last May 1.</a> Tom Adams Norm - in the text above, read the section called I bond composite rates, paying particular attention to the paragraph after the bullets that begins, "In the event the inflation rate is negative…"

For the record, the inflation rate currently being used to calculate I bonds rates is -5.56%. This was announced last May 1.

Tom Adams

]]> by: Norm Ross http://www.savings-bond-advisor.com/series-i-interest-rate-rules/#comment-49472 Mon, 12 Oct 2009 22:49:20 +0000 http://www.savings-bond-advisor.com/series-i-interest-rate-rules/#comment-49472 My I Bonds 2001 came in on the first of Oct 2009 showing 0 interest, but my bonds increased at the same pervious rate of .0799. The same thing happened to my I Bonds 2005 perviously and this month they actually did not increase at all. I was understanding that your fixed interest rate would always be there regardless of the cola. What am I missing? My I Bonds 2001 came in on the first of Oct 2009 showing 0 interest, but my bonds increased at the same pervious rate of .0799. The same thing happened to my I Bonds 2005 perviously and this month they actually did not increase at all. I was understanding that your fixed interest rate would always be there regardless of the cola. What am I missing?

]]> by: Tom Adams http://www.savings-bond-advisor.com/series-i-interest-rate-rules/#comment-43139 Thu, 18 Jun 2009 16:42:16 +0000 http://www.savings-bond-advisor.com/series-i-interest-rate-rules/#comment-43139 Vanessa - I bond rates adjust every six months. There are no EE bonds with a zero rate. Tom Adams Vanessa - I bond rates adjust every six months. There are no EE bonds with a zero rate.

Tom Adams

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