‘I Bond’ Countdown: Buy Before The November 1 Rate Reset, Or Wait?

Summary

  • Buy now? You guarantee a one-year return of 1.56%, which is attractive.
  • Wait until November 1? You could lose the 0.1% fixed rate, but earn more money in one year anyway.
  • Either way, this isn’t going to be a bad investment.

Yes, a 0.10% fixed rate may not seem like a big deal, but realize this: A 10-year TIPS is currently yielding 0.11%. I Bonds with a fixed rate of 0.1% and an attractive variable rate are going to be a hot investment through May 2017. But what if the fixed rate falls to 0.0%?

Read my analysis on SeekingAlpha.com

About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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