United States Savings Bond (I-Bond) Bond Review

Overall 4.20 of 5 view all 5 reviews

mindwell
Tacoma, WA

I Bonds Need Watching

saving a little, a cat lover

Pros

Can be purchased directly on-line, six month rate locks

Cons

deflation threat

DEC

2008

The United States Treasury I Bond is a welcomed addition to savers who have bought EE bonds over the years. However, these bonds need a watchful eye because the rate changes every six months. It is currently over 5% which is a splendid return. There is also a three-month interest penalty if you don't keep the bond 5 years. Still, this is far superior to the EE bonds return which was a paltry 1.4% the last time I looked. And if rates tumble for the I Bonds, you will still be ahead even with the three month penalty. Finally, these are a breeze to purchase. You can do it on-line at the Treasury with funds coming from your checking account. The transaction happens overnight and the paperless bond is held in your account at Treasury ready to be redeemed at quickly