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Article: Hate risk? Love a good yield? Savings bonds are for you
- Article from:
- The Milwaukee Journal Sentinel (Milwaukee, WI)
- Article date:
- January 2, 2000
- Author:
CopyrightCopyright 2000 The Milwaukee Journal Sentinel. Provided by ProQuest LLC. (Hide copyright information)
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I've told you before, but I must tell you again. If you're a
conservative investor looking for a pretty good yield and no risk,
take a good look at U.S. savings bonds.
In particular, the Series I or inflation-indexed bond that will
pay a rate of 6.98% for six months as long as you buy before April
30, with the interest rate resetting every six months after you buy.
Imagine, getting paid a nearly 7% annualized yield for six months,
and all of it guaranteed by the U.S. government. And, as long as you
don't cash in the bond, letting the interest accumulate and compound
without having to pay any taxes on it.
The downside? Not knowing what the interest rate will be after six
months, ...