Comments Subscribe to Personal Liberty News Feed Subscribe to Personal Liberty
 

The safety of I Bonds

October 29, 2008 by  

I Bonds are linked to inflationInvestors who are looking for a low-risk and high-yield place to store their wealth may be interested in exploring opportunities offered by inflation-linked savings bonds (I Bonds).

An article in the Wall Street Journal describes how yields for these bonds are expected to increase from 4.84 percent to 4.92 percent beginning in November, due to the increase in inflation seen over the past six months.

I Bond yields are based on both a fixed rate – currently set at 0 percent by the Treasury – and an adjustment based on inflation.

The fixed rate is maintained over the life of the bond, which is 30 years. Meanwhile, the inflation adjustment is adjusted every six months.

According to the Wall Street Journal, investors who buy I Bonds before November 1st will be able to guarantee the 4.84 percent rate for the October-March period, followed by a 4.92 percent rate for the following six months.

Although savers will be penalized if they cash in their bonds before the first five-year period is up, investors who maintain their money for one year could still enjoy a yield of 3.86 percent once the penalty has been taken into account, the publication explains.

Each individual may purchase up to $5,000 in I Bonds.
ADNFCR-1961-ID-18849352-ADNFCR

Personal Liberty News Desk

Facebook Conversations

Join the Discussion:
View Comments to “The safety of I Bonds”

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

Is there news related to personal liberty happening in your area? Contact us at newstips@personalliberty.com

Bottom
close[X]

Sign Up For Personal Liberty Digest™!

PL Badge

Welcome to PersonalLiberty.com,
America's #1 Source for Libertarian News!

To join our group of freedom-loving individuals and to get alerts as well as late-breaking conservative news from Personal Liberty Digest™...

Privacy PolicyYou can opt out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.