No Change in I Bond Fixed Rate
The Treasury Department announced this morning that the I Bond fixed rate for the next 6 months is 1.4%, no change from the previous cycle. While they didn't lower it to 1.2% as I speculated in my previous post, this fixed rate is still not attractive. I Bonds remain uncompetitive for both short term and long term needs. For short term, T-Bills and short-term CDs yield more. For long term, TIPS has much better real yields. I will sell my I Bonds bought in October 2005 in January 2007.
Software picked, likely related posts:
- I-Bonds Fixed Rate for May 1, 2007
- I Bonds Rate Guess for Nov. 1, 2006
- I-Bonds Fixed Rate Pre-Guess for November 2007
Comments
3 Comments on No Change in I Bond Fixed Rate
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indexfundfan on November 1, 2006 |
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TFB on November 1, 2006 |
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Hi IndexFundFan,
If it's not too late, you may want to hang on to your Oct 2005 I Bonds for a little longer because if you sell it now, you will lose 2 months of interest @ 6.93% and 1 month @ 2.21% while you gain two months @ ~5%. Of course if the amount is small, the difference is very small too.
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indexfundfan on November 1, 2006 |
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Oh, I didn't think of that. But it's too late now…
Tell me what you're thinking, but please don't spam. See comments moderation policy.


Hi TFB,
It's interesting we share the same ideas! This morning, I submitted the sale of the I Bonds bought on Oct and Nov 2005. For now, I am holding on to the I BOnds that were bought in 2003 and earlier.