I Bond Investors: Act Now, Don’t Delay

Summary

  • I Bonds issued before November 1 will carry a permanent fixed rate of 0.50%, creating a real return higher than that of a 5-, 10- or 20-year TIPS.
  • The Treasury will reset this fixed rate on November 1, and it is very likely to go lower.
  • With interest rates sliding lower, this could be a “last chance” opportunity (for years?) to get a good fixed rate on an excellent inflation-protected investment.

It pains me to say this: The market’s best inflation-protected investment could go “poof” on November 1. That’s the date the U.S. Treasury will reset the fixed rate on its U.S. Series I Savings Bonds. And the news isn’t likely to be good.

Read my full 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.
This entry was posted in Investing in TIPS. Bookmark the permalink.

1 Response to I Bond Investors: Act Now, Don’t Delay

  1. Anan Isapta says:

    The other possibility is that some successful trade agreements (especially with China) will cause a stock market ‘melt-up’ with escalating interest rates to follow.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s