I Bonds: Hold Or Sell?
Savings Bond Advisor reported that the next inflation adjustment on I Bonds will be 3.07%. I bought some I Bonds in April 2008 when the base rate was 1.2%. They will earn 0% starting this month through March 2010. Based on the 3.07% inflation adjustment, these I Bonds will earn 4.28% between April and September 2010.
I had planned to sell them in January 2010 after they earn nothing for three months. Now it looks like I will hold them one more year until January 2011.
If I redeem them in January 2011 instead of January 2010, these April 2008 I Bonds will earn
Not Too Thrilled About 1.2% I Bonds
A reader asked a few weeks ago if I'd write something about the Series I Savings Bonds (or "I Bonds" in short). I was thinking of doing it but I now see Jonathan at My Money Blog already did a very good job on this topic. There is also a long thread on the Bogleheads forum about it.
If you are not familiar with I Bonds, please read:
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