Now Is Not The Time To Be Buying I-Bonds

The Consumer Price Index came in at a -0.6% for the month of November – the biggest monthly decrease in 56 years – mainly due to a large drop in gasoline prices. I wrote about just this scenario when I thought that purchasing I-bonds during this six month period was not a sound investment.

While there are still a few months left before the new I-Bond rate is announced, it is likely to be well below the current 6.73% rate. That coupled with the current I-bonds paying a base rate of just 1.0% (the lowest since it’s introduction) it makes little sense to purchase I-bonds at this time.

This will make for some interesting scenarios come next May. While there was a large decreas

...

[Continue Reading at SavingAdvice.com]

This entry was posted in Investing. Bookmark the permalink.

3 Responses to Now Is Not The Time To Be Buying I-Bonds

  1. Neo says:

    I was thinking of picking up some more I-Bonds since it is getting closer to the end of the month. Would you suggest waiting until the new rates get announced next year?

    Neo

  2. pfadvice says:

    I don’t claim to be an I-bond expert, but coomon sense leads me to see no upside to buying I-bonds at the moment and a lot of possible downsides.

    I’m currently keeping my money earmarked for I-bonds in an HSBC banking account (4.25%) and will do so until I see the new rates next year. With the large decrease in the CPI my guess is that I-bonds will be at a lower rate than many of the online banks when the rates are updated.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>