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Jonathan over at MyMoneyBlog has a great post on Series I Savings Bonds…check it out if you would like to lock in up to  $10K at a ~4.04% interest rate for eleven months. This is if you buy before the end of April 2008 and sell April 1, 2009. You could hold onto them for an additional three months and make ~4.43% over a period of 14 months, as pointed out here.  Alternatively, if interest rates continue to drop and we’re in the middle of an economic recession, it might be prudent to keep the money in the bonds longer.

This is a pretty competitive yield. And if rates continue to drop, this could yield considerably more than bank CDs. Only downside that I can see is non-liquidity.

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