I-BOND rate question

#3 08-27-2006, 03:10 PM

"g_chime[at]yahoo.com" <g_chime[at]yahoo.com> writes:

- quote -

> I'm planning on buying I-BONDS on a regular bases
> and I'm wondering what the best strategy is as far as base rate goes.

If you like the current rate, buy them. If you find that
after a year the rate base rate (not the floating part!)
is substantially higher, you can take a small hit and
cash them out and get new ones.

- quote -

> When are they announcing the base rate for the next six month?

They update the rate on May 1 and on Nov 1.

- quote -

> Are there a few days after the announcement when
> you can buy them with the old rate?

No. They are announced the same day as they go into effect.

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#2 08-27-2006, 06:14 AM

Mark Freeland wrote:
- quote -

> So you get no advance notice of the fixed rate.

Oh yeah, I think you're right. The fixed rate is announced on May 1 and
Nov 1, and is effectively immediately. But the variable/inflation rate
is known a few weeks before that.

#1 08-27-2006, 04:03 AM

"Bucky" <uw_badgers[at]email.com> wrote in message
news:1156630705.027257.62700[at]m79g2000cwm.googlegroups.com...
- quote -

> g_chime[at]yahoo.com wrote:
> > When are they announcing the base rate for the next six month?
> They're announced each May and November.
> http://www.treasurydirect.gov/indiv/...esandterms.htm
> > Are there a few days after the announcement when
> > you can buy them with the old rate?
> Yes, I think they announce it a few weeks in advance.

On the page you cite, it reads:

"Fixed Rate:
* Announced each May and November
* Applies to all bonds issued during the six months period beginning
with the announcement date."

So you get no advance notice of the fixed rate. Admittedly they are less
clear on the inflation (variable) rate, but there is always just a single
rate announcement, where both the fixed and variable rates are given for
bonds issued from that date on.

Mark Freeland
BnetOnewsX[at]sbcglobal.net

08-26-2006, 10:19 PM

g_chime[at]yahoo.com wrote:
- quote -

> When are they announcing the base rate for the next six month?

They're announced each May and November.
http://www.treasurydirect.gov/indiv/...esandterms.htm

- quote -

> Are there a few days after the announcement when
> you can buy them with the old rate?

Yes, I think they announce it a few weeks in advance.

#-1 08-26-2006, 08:22 PM

I'm planning on buying I-BONDS on a regular bases
and I'm wondering what the best strategy is as far as base rate goes.

When are they announcing the base rate for the next six month?

Are there a few days after the announcement when
you can buy them with the old rate?

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