http://www.pfadvice.com/2005/11/01/i-bond-rate-is-673/ Bridging the gap between saving money and investing Mon, 01 Dec 2008 22:06:00 +0000 http://wordpress.org/?v=2.6.1 http://www.pfadvice.com/2005/11/01/i-bond-rate-is-673/#comment-53 SMB Wed, 02 Nov 2005 00:00:28 +0000 http://www.pfadvice.com/2005/11/01/i-bond-rate-is-673/#comment-53 I think I understand now. I usually make sure I understand completely what I'm investing in before I jump in, but this sounded too exciting (and it was only $400). Thanks! I think I understand now. I usually make sure I understand completely what I’m investing in before I jump in, but this sounded too exciting (and it was only $400). Thanks!

]]> http://www.pfadvice.com/2005/11/01/i-bond-rate-is-673/#comment-51 pfadvice Tue, 01 Nov 2005 21:33:50 +0000 http://www.pfadvice.com/2005/11/01/i-bond-rate-is-673/#comment-51 You made the right move by buying in October. Yes, your rate will be 4.80% for the next 6 months and then will be 6.73% for 6 months, but the important number is the fixed rate. The higher the fixed rate, the better. Since the fixed rate went down in this last update (from 1.2% to 1.00%), you were better off purchasing in October. When the next update comes in 6 months, you will get whatever the infaltion rate is + 1.2% (since the base always stays the same) instead of 1.0% if you had purchased this month. You made the right move by buying in October. Yes, your rate will be 4.80% for the next 6 months and then will be 6.73% for 6 months, but the important number is the fixed rate. The higher the fixed rate, the better. Since the fixed rate went down in this last update (from 1.2% to 1.00%), you were better off purchasing in October. When the next update comes in 6 months, you will get whatever the infaltion rate is + 1.2% (since the base always stays the same) instead of 1.0% if you had purchased this month.

]]> http://www.pfadvice.com/2005/11/01/i-bond-rate-is-673/#comment-49 SMB Tue, 01 Nov 2005 16:05:23 +0000 http://www.pfadvice.com/2005/11/01/i-bond-rate-is-673/#comment-49 Dumb question: You bought it in October, when the interest rate was 4.80%. (I bought in October too.) I thought I read on their site that the rate will be 4.80% for six months, and THEN it would jump to the new rate. Did I misunderstand? Does it now seem that it would have been better to wait until November to buy an I-Bond? I just looked at my account info on treasurydirect.gov, and it's showing 4.80%. Dumb question: You bought it in October, when the interest rate was 4.80%. (I bought in October too.) I thought I read on their site that the rate will be 4.80% for six months, and THEN it would jump to the new rate. Did I misunderstand? Does it now seem that it would have been better to wait until November to buy an I-Bond? I just looked at my account info on treasurydirect.gov, and it’s showing 4.80%.

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