Some of you may recall that I have been an advocate (and buyer) of Series I savings bonds. The interest earned on these savings bonds is composed of an inflation component and a fixed rate component. Therefore, the holder was guaranteed a rate of return above the measured inflation rate. The guaranteed return has been lowered to zero at the Treasury's last reset. Series EE savings bonds no longer pay an adjustable rate, they pay a ridiculously low fixed rate of 1.4%.
DO NOT BUY UNTIL THE TREASURY ADJUSTS THE RETURNS.
Thursday, October 2, 2008
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