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Savings Bonds

All articles tagged with #savings bonds

finance2 years ago

The Changing Appeal of I Bonds and Bond Investments

The US Treasury Department has announced two key improvements to I bonds, making them more attractive for investors. First, the annualized yield for new I bond purchases made through April has increased to 5.27%, up from the previous 4.30% annual return. Second, the fixed rate for I bonds has risen to 1.30%, up from 0.9% for the past six months. This fixed rate will ensure a return above inflation for the next 30 years, making I bonds a safe and attractive long-term investment option. I bonds are government-backed savings bonds tied to the Consumer Price Index, providing protection against inflation.

via Yahoo Finance|
#finance#fixed-rate#i-bonds
finance2 years ago

"I Bonds' Fixed Rate Soars, Boosting Interest Rates"

The new rate for I Bonds purchased from November through April 2024 is 5.27%, with the fixed rate increasing to 1.3%, a significant jump from the previous rate of 0.9%. The rate for I Bonds is a blend of the fixed rate and an inflation-driven rate, which adjusts every six months. Savers are advised to wait until November to buy I Bonds for a higher fixed rate. I Bonds cannot be redeemed for the first 12 months, and those held for less than five years are subject to a three-month interest penalty.

via Detroit Free Press|
#finance#fixed-rate#i-bonds
personal-finance2 years ago

Uncovering the Forgotten Value of Series I Bonds

If you bought Series I bonds and forgot about them, you can log into your TreasuryDirect account to check your balance and calculate your cumulative interest rate. The current composite rate is 4.3%, but the upcoming rate will be announced by the Treasury. You have options: hold onto the bonds for long-term preservation of capital, cash them out and buy I-bonds with a fixed-rate component, or invest in other Treasury products like TIPS. Financial experts suggest considering the current rates and inflation protection when making a decision.

via MarketWatch|
#fixed-income-investing#inflation-protection#personal-finance
finance2 years ago

The Looming Debt Ceiling Crisis: Seniors, Investors, and Democrats on Edge.

Investors and retirees are worried about the debt ceiling showdown and the potential financial impact it could have. However, financial experts advise against making rash decisions based on fear. Instead, they recommend holding onto ultra-safe savings bonds, not giving up on the stock market, building a cash cushion, getting rid of debt, and diversifying investments. While there is concern about the government's spending habits, this conflict is about spending that has already been approved, and it is important to maintain consumer confidence during a time when the Federal Reserve is battling inflation and there is concern about a potential recession.

via The Washington Post|
#debt-ceiling#finance#investors
finance2 years ago

I Bonds offer trade-up opportunity with new 4.3% fixed rate.

The rate for Series I savings bonds, also known as I-bonds, will reset to 4.3% from May 1 to the end of October, including a 0.9% fixed rate and a 1.69% six-month rate, according to the Treasury Department. While the new rate is lower than the previous six-month rate of 6.89%, it is higher than estimates based on known inflation data, making it a potentially attractive option for investors seeking a fixed rate of return.

via MarketWatch|
#finance#fixed-rate#i-bonds