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Series I Savings Bonds Are A Good Deal Compared To TIPS

Thursday, May 3, 2012 - 4:57 AM
If you didn't buy I bonds in April, you missed getting 6 months of a 3.06% rate. Nevertheless, the new 2.20% rate isn't bad, and I bonds are still a good deal compared to the conservative alternatives. For example, they're are now a much better deal than TIPS as explained by this Savings Bond Advisor post:
Even though this is the fourth time in a row that I bonds will have a zero percent base rate, it's the first time that Series I Savings Bonds have had a higher fixed rate than TIPS! The 10-year TIPS rate on Friday was -0.30%. The fixed rate on I bonds can't go below zero, while the fixed rate of TIPS can, which is what set up this anomaly.

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Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
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