Treasury Direct released new interest rates for the saving bonds:
Series I savings bonds will earn 4.84% for next 6 months; however, the fixed rate is 0.00%!
I Bond earnings rate is a combination of a fixed rate, which applies for the life of the bond (30 years), and the semiannual inflation rate.
For the I bonds purchased from May 1 of 2008 to October 31 of 2008, their earning rate will only match the inflation rate.
Also, series EE savings bonds purchased from May 1 of 2008 to October 31 of 2008 will earn 1.20% for the life of the bond (30 years).
However, if the EE bond does not double in value as the result of applying the fixed rate for 20 years, the U.S. Treasury will make a one-time adjustment at original maturity (20th year) to make up the difference.
Is there any reasons to buy series EE instead of series I saving bonds?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment