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Nov 01, 2005 -- I-bonds are still a great deal!

In years 1998, 1999, 2000 and 2001, Clark talked quite a bit about what a great deal Series I savings bonds were. Known as inflation adjusted bonds, they were a great opportunity for the small saver. People who bought the bonds back then are now earning 9.4 percent on their money. Today, you still have an opportunity to buy them. And at today’s rate, you’ll earn 6.73 percent. Six months from now, however, that rate could move higher or lower. You get a base guaranteed interest rate plus the rate of inflation. So, when inflation rises, you’ll make more and vice versa. You can own between $50 and $30,000 worth of I-bonds. In some cases, people will hold onto them for 30 years. But if they turn out to be not such a good deal down the road, you can cash in the I-bonds for free after 5 years. As long as you keep them a year, the penalty for cashing them in before five years is not so bad. To buy them, go to savingsbonds.gov and enter your checking information. It’s ok to do because the U.S. Treasury takes the information and issues you an electronic statement. Think about getting some!
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