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Article: Good buys on savings bonds end on Nov. 1.
- Article from:
- The Philadelphia Inquirer (Philadelphia, PA)
- Article date:
- October 16, 2006
CopyrightCOPYRIGHT 2006 The Philadelphia Inquirer. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Jeff Brown
Thinking of buying inflation-adjusted U.S. savings bonds? Then gather your cash quickly.
Chances are, you'll get a better deal with I-bonds purchased this month than with the ones coming to market Nov. 1.
Bonds sold from the start of May through the end of October pay annual interest of 2.41 percent. That comes from a variable rate of 1.01 percent, plus a fixed rate of 1.4 percent.
Once a bond is purchased, the variable rate changes every six months to match inflation, going to the level set on the most recent May 1 or Nov. 1.
But when you buy a bond, its fixed rate stays the same for its 30-year life span. ...