Gov I- Bonds Yeild 6.73%

[Taosman]

I bought some Gov I-Bonds today after finding they were offering 6.73%.
I thought that sounded very good.
Maybe we can get some comments from Boxcarwillie about this offering?

[MililaniBuckeye]

What's the term on them? 10-year bonds? 20-year bonds?

[BoxCar_Willie]

Taos, I never said any interest baring investments were poor, just not appropriate for a 28 yr old in a 3-7 year time frame.
I guess If I didn't believe in capitalism these might look pretty sweet as well
I'll let my 86 year old grandma know about the great rates. Gracias

[Taosman]

Boxcar, relax, man! I'm not trying to dump on ya! I thought you might have something worthwhile to say on US Bonds?

Anyhow, I-Bond rates are adjusted every six months. You must leave your money in there for at least a year. I don't find that a problem. Hard to beat that rate.

[Taosman]

As for my personal investing style. I'm conservative. I'm still mostly in stocks/mutual funds. But, I do love a nice CD or Bond rate when I find it. I ladder CDs and Bonds out over time.

[Taosman]

<TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD vAlign=top rowSpan=2> </TD><TD vAlign=top><TABLE width="100%"><TBODY><TR><TD bgColor=#33cc66>What's the Difference Between
I Bonds and EE Bonds?
</TD></TR></TBODY></TABLE></TD></TR><TR><TD vAlign=top>

The chart below will help you understand, at a glance, the major differences between I Bonds and EE Bonds. If you want to learn more, see our main menus for I Bonds and EE Bonds.
<TABLE border=2><TBODY><TR><TD> </TD><TD align=middle>EE Bond</TD><TD align=middle>I Bond</TD></TR><TR><TD vAlign=top rowSpan=3>Features</TD><TD>Issued at 50% of face value. (A $100 EE Bond costs $50.)</TD><TD vAlign=top>Issued at face value. (A $100 I Bond costs $100.)</TD></TR><TR><TD vAlign=top>Offered in 8 denominations ($50, $75, $100, $200, $500, $1,000, $5,000, and $10,000).</TD><TD>Offered in 8 denominations ($50, $75, $100, $200, $500, $1,000, $5,000, and $10,000).</TD></TR><TR><TD>$30,000 issue price annual purchase limit per person. </TD><TD vAlign=top>$30,000 annual purchase limit per Social Security Number. </TD></TR><TR><TD vAlign=top rowSpan=5>Interest</TD><TD vAlign=top>Calculated as 90% of 6-month averages of 5-year Treasury Securities yields.</TD><TD>Calculated as an earning of a fixed rate of return and a semiannual inflation rate based on CPI-U.</TD></TR><TR><TD>Rates announced every May 1 and November 1.

Please Note: Series EE bonds purchased May 2005 and after will earn a fixed rate of return. See our press release for more information.</TD><TD vAlign=top>Rate Announcement: Same as EE. </TD></TR><TR><TD>Guaranteed to reach face value in 20 years.</TD><TD vAlign=top>No guaranteed level of earnings.</TD></TR><TR><TD vAlign=top>Increases in value monthly and compound semiannually. Interest is paid when the bond is redeemed.</TD><TD>Generally increases in value monthly and interest compounds semiannually (except in periods of deflation when the bond value could remain unchanged). Interest is paid when the bond is redeemed.</TD></TR><TR><TD>Earn interest for up to 30 years.</TD><TD vAlign=top>Life span: Same as EE.</TD></TR><TR><TD vAlign=top rowSpan=4>Cashing</TD><TD>Can be cashed any time after 12 months.</TD><TD vAlign=top>Same as EE.</TD></TR><TR><TD>A 3-month interest penalty applies to bonds redeemed during the first 5 years.</TD><TD vAlign=top>Same as EE.</TD></TR><TR><TD>Financial institution reports interest earnings (difference between redemption value and purchase price) on IRS form 1099-INT. Savings bonds are exempt from state and local income taxes.</TD><TD vAlign=top>Same as EE.</TD></TR><TR><TD>Eligible for tax benefits upon redemption when used for qualified education expenses.</TD><TD vAlign=top>Same as EE.</TD></TR></TBODY></TABLE>
Return to I Bond Main Menu <CENTER></CENTER></TD></TR></TBODY></TABLE>

[BuckeyeRyn]

ahh... I'm telling you, just stick the cash in your matress....