Comments on: Series I Savings Bond fixed base-rates

by: Tom Adams

Tue, 22 Dec 2009 15:10:58 +0000

Pat - After answering five years worth of questions about various aspects of children and parents fighting over Savings Bonds, I am not fond of using them as gifts. But if you're still interested, see my page on gift bonds.

Tom Adams

by: Pat Johnson

Mon, 21 Dec 2009 18:41:48 +0000

I have a new granddaughter and was thinking of getting her savings bonds. is this a good idea of should I look at something else.

by: Tom Adams

Thu, 06 Aug 2009 15:38:35 +0000

Stansel - It's not correct to say "The fixed rate component of the I Bonds is not fixed."

It's fixed, and the inflation component is added to or subtracted from it, depending on whether the inflation component is positive or negative. That's how I bonds have always worked and have always been described on this web site.

The inflation component was just never negative before. I don't see how it's the government's fault that you didn't understand how the investment you bought worked. The Treasury was very clear about it working this way when you invested in the I bonds.

Tom Adams

by: Stansel Harvey

Wed, 05 Aug 2009 16:50:32 +0000

Beware: The fixed rate component of the I Bonds is not fixed. It can go down. With the flexible rate portion in negative territory it pulls down the fixed rate. Most all of my previously purchased I Bonds are drawing 0% interest in spite of them having a good "fixed" rate of return. So, when is a fixed rate not a fixed rate? When the government runs the program.

by: Tom Adams

Wed, 15 Jul 2009 16:38:46 +0000

J - right now neither EE or I bonds are very interesting as an investment.

In general, however, I bonds earn more than EE bonds. The Treasury is just taking advantage of people with EE bonds.

Tom Adams

by: J. McCormick

Tue, 14 Jul 2009 20:01:12 +0000

I'm confused. Which is the better buy at this
time…EE or I bonds?