Berkeley CSUA MOTD:Entry 42964
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2024/11/26 [General] UID:1000 Activity:popular
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2006/5/7-10 [Uncategorized] UID:42964 Activity:nil
5/7     Anyone following the EE bonds and I bonds?  Why did the rate drop
        from about 6% to 2% on the newly issued I bonds?
        \_ Aren't I Bonds a fixed rate + CPI? How could they be 2%, since
           inflation is higher than that???
           \_ yes. the 2% is the fixed rate on *newly issued* bonds.
              \_ The old rate was 6% + CPI??? Wow, I should have gotten
                 me some of those. They had a higher rate of return and
                 less risk than T-Bills. Somehow, I think you have that
                 value wrong.
           \_ the current base rate is 1.4%, inflation payout is 1%
              a total of 2.4% for the next 6 month period. inflation
              payout for the previous 6-month period was > 5%
              http://tinyurl.com/jnhfg
              \_ Inflation is 1%??? These bastards are lying. Again.
Cache (2031 bytes)
tinyurl.com/jnhfg -> www.publicdebt.treas.gov/com/comi0506.htm
No FEAR Act I BONDS TO EARN 241% WHEN BOUGHT FROM MAY 2006 THROUGH OCTOBER 2006 FOR RELEASE AT 10:00 AM EST May 1, 2006 I BOND EARNINGS RATE 241% The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which will apply for the life of the bond, and the inflation rate. The 241 percent earnings rate for I bonds bought from May through October 2006 will apply for the first six months after their issue. The earnings rate combines the 140 percent fixed rate of return with the 100 percent annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). Treasury's inflation-indexed I bonds are designed to offer all Americans a way to save that protects the purchasing power of their investment by assuring them a real rate of return above inflation. I bonds have features that make them attractive to many investors. They are sold in electronic form in amounts of $25 and above, or in paper form at face value in denominations of $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000, and earn interest for as long as 30 years. I bond earnings are added every month and interest is compounded semiannually. They are state and local income tax exempt, and Federal income tax on I bond earnings can be deferred until the bonds are cashed or they stop earning interest after 30 years. Investors cashing I bonds before five years are subject to a 3-month earnings penalty. Account holders can purchase, manage, and redeem I bonds over the Internet 24 hours a day, seven days a week. I BOND FIXED RATE 140% Series I, inflation-indexed savings bonds purchased from May through October 2006, will earn a 140 percent fixed rate of return above inflation. The 140 percent fixed rate applies for the 30-year life of I bonds purchased during this six-month period. An Earnings Report, which contains rate and yield information for bonds is available by mail. Send a postcard asking for "Earnings Report" to Bureau of the Public Debt, 200 Third Street, Parkersburg, WV 26106-5312.