Thursday, October 20, 2005

On Board With I Bonds

The hubbub was just too much for me to ignore.

Thanks to all the attention that's been paid to I Bonds and their likely upcoming rate boost, I stepped up to the plate and opened a Treasury Direct account this evening. I'll be buying a batch of I Bonds shortly.

For those who might be interested, the online account-opening process was a breeze — it took perhaps five minutes. I've linked the Treasury Direct account to my main bank account and my savings at ING Direct.

Easy peasy.

Related Posts
2005-10-21: "On Board With I Bonds, Part 2"

More Good Reads
My Money Blog: "I Bonds: Buying in October vs. November"
My Money Blog: "Getting Ready to Buy I Bonds"

Susan Tompor (Detroit Free Press): "Time for I Bonds Is Now"

Mark Hulbert (MarketWatch): "The I Bonds Have It"

Laura Bruce ( "Hefty I Bond Rate Looms"

— Posted by Michael @ 4:36 PM


The November 1st new issue of I-bonds has dropped the fixed rate component of the interest rate from 1.2% to 1.0%. The market expected an increase to 1.5-1.6%, consistent with the increase in the real yield of TIPS. Apparently, Treasury feels it can get away with putting one over on the small investor by hoping they will not notice what was done to them in light of the large increase in the 6-month inflation component of the interest rate.


I can't speak for what the market expected, but I know that I sure didn't expect an increase in the fixed component.

Actually, I thought it a certainty that the gov't would decrease the fixed portion. Leaving it at 1.2% would have just made things ... too easy.

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Thoughts on my personal finances, goals, experiences, motivations, and accomplishments (or lack thereof).

My financial life began turning around when I took responsibility for it.
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Start (2005-12): ~$21,900
Currently: $0
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Savings Goal: $15,000
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