Comments on: I-Bond Rate for May 2009 – November 2009 Is 0%

By: Sun

Sun — Sun, 03 May 2009 03:04:32 +0000

Haha, I am still loving that 2.0% return from a bank than nothing from the government. But there may be people still think banks aren’t safe because they can fail (and they did). Between hiding the money under their mattresses, which only earns them nothing, and lending the money to the government interest free, they may be choose the latter because it’s safer

By: nickel

nickel — Sun, 03 May 2009 02:44:47 +0000

Yeah, but I can get safety plus a non-zero return at the bank.

By: Sun

Sun — Sun, 03 May 2009 02:43:43 +0000

@cs If an I-bond issued before has a fixed rate that’s higher than 5.56%, then that bond can still earn some interests for the next six months. But I doubt such a bond exists. So basically, yes, all existing I-bonds will earn no interest from May to November.

@nickel No, there’s no reason to invest in something that earns you no interest at all, unless you only care the safety of the principal.

By: nickel

nickel — Sat, 02 May 2009 23:00:00 +0000

So… What’s the point? Why buy?

By: cs

cs — Sat, 02 May 2009 21:35:10 +0000

From Savings Bond Advisor:

“The inflation component for I bonds for the next six-month rate period is -5.56%, which will wipe out the fixed base-rate on all issues of I bonds, including newly issued I bonds…

All I bonds, including new ones, will have an interest rate of 0% during their next six-month rate period…”