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Article: Savings bonds still a good deal despite longer holding period.(Knight Ridder Newspapers)
- Article from:
- Knight Ridder/Tribune News Service
- Article date:
- January 20, 2003
- Author:
CopyrightCOPYRIGHT 2003 Knight-Ridder/Tribune News Service. 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
Last October, I urged fixed-income investors to consider buying U.S. Savings Bonds before new rates took effect Nov. 1. But conditions have changed since then. Are savings bonds still a good deal?
Back then, the case for savings bonds went like this:
Rates on the Patriot bond, also called the EE bond, were quite generous, 3.96 percent for the first six months. Government-backed savings bonds are extraordinarily safe. Unlike most other bond types, savings bonds guarantee that you get all your principal back, plus interest. Other bonds can fall in value if prevailing interest rates rise and you have to sell.
In fact, ...