Comments on: I-Bond Rate Is 6.73%

By: SMB

SMB — Wed, 02 Nov 2005 00:00:28 +0000

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!

By: pfadvice

pfadvice — Tue, 01 Nov 2005 21:33:50 +0000

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.

By: SMB

SMB — Tue, 01 Nov 2005 16:05:23 +0000

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%.