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December 13, 2005
I Bonds at 6.73%?
-- by Dave Johnson
Can someone explain what I'm missing? I can get I Bonds paying 6.73%, buy a minimum of $50 and only have to hold them a year? Am I correct? Why would anyone buy a CD at a bank, or any other kind of Treasury bill or savings bond?
Bank of America, for example, pays 1.78% for a 1-year CD, 3.73% on more than $10,000. E-Trade pays 4.63%
So I'm stupid, what am I missing?
Posted by Dave Johnson at December 13, 2005 1:38 PM
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Comments
If you redeem the I bond within the first 5 years you forfeit the 3 most recent months' interest so you wouldn't be getting 6.73% if you held them for a year, more like 5%.
Posted by: Anonymous at December 13, 2005 2:02 PM
Five percent is still better than 1.78% and you can buy into them at $50 a shot. Sounds pretty good to me. Are the tax advantages any different?
Posted by: Gary Boatwright ![[TypeKey Profile Page]](http://www.seeingtheforest.com/nav-commenters.gif)
at December 13, 2005 3:13 PM
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