I-Bond Warning

I received an email asking if I thought moving savings into I-Bonds was a good financial move at this time with the rates at 6.73%. My humble opinion is that it would not be a good move at this time. You need to be careful with this investment. While the 6.73% may look extremely enticing in itself, the key number to look at is the fixed base interest rate which is only 1% and is not a good number to have over the long run.

My main concern was that when the inflation rate was announced, most people agreed that a large part of it was caused by skyrocketing gas prices due to hurricanes Katrina and Rita and the havoc they caused the gulf oil industry while most other prices remained stable. The


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2 Responses to I-Bond Warning

  1. Reality Bites says:

    Unless of course there is peak oil happening….
    There may be a short reprieve, and inflation is already pretty high. I’m betting on more inflation and a recession hot on it’s heels. That’ll cool off the inflation a bit.

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