JPatrick
Thinks s/he gets paid by the post
- Joined
- Jun 3, 2005
- Messages
- 2,610
It's that time again, when we play guess the new inflation component that will take effect May 2014.
From what I've read, the expert guessors are looking for a variable rate of 1.83%, which when added to the fixed rate of .20 gives us a fairly sweet rate exceeding 2%.
Will the current fixed rate carry over? Will it be dropped or even raised?
Good questions if you are trying to decide if buying today and capturing the fixed rate, or taking your chances on what May could bring.
Myself, I bought a few $$ worth today for the safe and secure portion of my portfolio. These new bonds will pay 1.38% for six months retroactive to April 1, after which the new 2% plus will kick in for 6 months. The payout is tax free at the state level, and in general beats current CD rates.
Of course all of the above hinges on the May rate matching the guesstimate.
As always YMMV.
Anyone else keep some I Bonds on hand?
From what I've read, the expert guessors are looking for a variable rate of 1.83%, which when added to the fixed rate of .20 gives us a fairly sweet rate exceeding 2%.
Will the current fixed rate carry over? Will it be dropped or even raised?
Good questions if you are trying to decide if buying today and capturing the fixed rate, or taking your chances on what May could bring.
Myself, I bought a few $$ worth today for the safe and secure portion of my portfolio. These new bonds will pay 1.38% for six months retroactive to April 1, after which the new 2% plus will kick in for 6 months. The payout is tax free at the state level, and in general beats current CD rates.
Of course all of the above hinges on the May rate matching the guesstimate.
As always YMMV.
Anyone else keep some I Bonds on hand?