[an error occurred while processing this directive]
PFBlog logo

My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

  Home | Feed: feed-icon.gif | About | Progress: June 07: $756,924 | Best of PFBlog | Product Reviews | PFBlog Digest | Disclaimer | Advertise | Contact Me

New Saving Bond Rates: EE = 3.25%, I = 3.67%

The interest rate for saving bond in the next six months has just been annouced. EE bonds, whose interest rate is tied to 90% of the average 5-year Treasury securities in the last six months, now posts an interest rate of 3.25%, compared to 2.84% in the previous six months. Inflation-protected I bonds now yields 3.67%, which includes a 1.0% fixed rate component for I bonds acquired in the next six months, and a 2.66% inflation component that applies to all I bonds issued. The rate of 3.67% is also increased from 3.39% in the last six-month period.

As you all know, I have been stashing some "pocket money" every month to saving bonds every month since last November. By the end of October, I have around $3,000 in my TreasuryDirect account, including $600 in EE bonds and $2,400 in I bonds. My current plan is to add $500 to saving bonds every month with a preference of I bonds. (I prefer I bonds a bit as it enjoys higher interest and the trend is likely to continue in the next 12-24 months. THis period's EE bond interest rate is helped by a market interest rate spike during the summer -- at today's 5-year Treasury rate of 3.34%, the new EE bond interest rate would be close to 3.00%.)

I see saving bonds as a convenience way of building some emergency cash over time. Although saving bonds cannot be redeemed in the first 12 months, over time it enjoys better interest rate than almost all money market account, and owners may receive certain tax benefits on interest when proceeds are used for educational purposes.

This post has 2 comments. Read and share your opinions.
Similar Posts

Heated War of Saving Rates (November 19, 2004)
The war about saving rates is certainly getting hotter every day. Two weeks ago, I reported ING Direct is raising the APY of its saving account to 2.20%, outbeating the next competitor VirtualBank by 0.05%. Since then, VirtualBank fought back by raising APY to 2.21 ... Read
Higher Saving Rate from ING Direct and CapitalOne (November 05, 2004)
As you can see from my monthly balance sheet, I have a lot of cash sitting in my saving accounts. I put majority of the money in VirtualBank, which earns me an APY or 2.15%. Of course, you can expect I am always checking new ... Read
Vonage: Much Improved VOIP Technology (And Referral Deal) (October 02, 2004)
I have been using Vonage as my primarily local phone service since I moved to my current house in August 2003. Vonage is the leading broadband phone service provider. Its VOIP (Voice-Over-IP) technology leverages your underlying broadband connection (either cable Internet or DSL) to make ... Read
My Fellow Bloggers (September 29, 2004)
After a look at the archive of PFBlog.com, I just realized that it is almost a year since I started active blogging on personal finance topics. I originally started PFBlog to keep a good record of my personal finance practices, and I believe if I ... Read

Read all 98 articles in the same category.
>>> Mark Little Commented on November 04, 2004

I bought savings bonds regularly and it has turned out to be one of the best moves I have made in the last 20 years. Most of my bonds are guaranteed to yield 6% and they don't begin to mature until 2016.

They will be a great augmentation to my social security (I'll be 66 in 2012).

>>> Andrew Yu Commented on December 25, 2004

I am happy to have bought a bunch of saving bonds last year using credit cards (including 5% citi dividend and at&t). It gives a sense of securiety and discipline. US Treasury should be the last to default but who knows what will happen if China and Japan stop buying and start cashing out theirs. I wish I would not be too late to cash out if financial crisis hits US.

Add Your Comments

Remember personal information?

Mail This Post
Email addresses will never be collected or sold.
Email this entry to:

Your email address:

Message (optional):

Read More ... 98 Posts In The Same Category

VirtualBank Fought Back, Yielding 3.05% Now (April 08, 2005)
Treasury Rewrites Series EE Savings Bonds Rules (April 05, 2005)
ING Direct at 3.00% Now (April 05, 2005)
ING Direct and VirtualBank Both at 2.80% APY. Who's Next? (March 22, 2005)
Emigrant Direct Savings Account Now Yields 3.25% (March 13, 2005)
What's Your Life Expectancy? (March 05, 2005)
Bankrate.com Makes Adjustable Rate Mortgage Search More Powerful (March 03, 2005)
PFBlog Product Reviews (February 07, 2005)
Amazon Prime: All-You-Can-Eat Express Shipping (February 02, 2005)
EmigrantDirect American Dream Savings Account Yields 3.0% (January 28, 2005)
More Free Tax Filing Options This Year (January 18, 2005)
DeductionPro: Free for Download (January 12, 2005)
Want To Buy A TiVo? Get $20 Here (December 25, 2004)
TiVo: Cannot Be More Satisfied (December 25, 2004)
More Personal Finance Bloggers (December 23, 2004)
Rip-Off Report (December 07, 2004)
Heated War of Saving Rates (November 19, 2004)
Higher Saving Rate from ING Direct and CapitalOne (November 05, 2004)
Vonage: Much Improved VOIP Technology (And Referral Deal) (October 02, 2004)
My Fellow Bloggers (September 29, 2004)
The Ultimate Real Estate Search Engine (September 28, 2004)
First Impression of Microsoft Money 2005 (September 20, 2004)
Home Price Check, Again (September 02, 2004)
66 Ways to Save Money (August 18, 2004)
Salary Timer (August 17, 2004)
MyRatePlan, A Good Data Compiler (August 09, 2004)
A Closer Look at 2004 Sales-Tax-Free Holidays (July 28, 2004)
0% Offers (July 28, 2004)
CapitalOne No Regrets Certificate of Deposit (July 18, 2004)
"Profit from Chase" Credit Card (July 09, 2004)
Free Credit Report from Experian (July 05, 2004)
AuctionDrop Helps You to Sell at eBay (July 02, 2004)
Bill Me Later® (June 23, 2004)
True Cost to Own A Car (June 18, 2004)
The Kirk Report (June 03, 2004)
DebtSmart.com - A Great Personal Finance Site (May 31, 2004)
Individual Tax Statistics by Zip Code (May 25, 2004)
$175 Promotion from E*Trade Bank (May 20, 2004)
BondRewards.com (May 09, 2004)
New Saving Bonds Rates: EE = 2.84%, I = 3.39% (May 03, 2004)
King County, WA's eSales Search System (May 02, 2004)
J.D. Power 2004 Vehicle Initial Quality Survey (April 30, 2004)
Refinancing Closed, Part III: LendingTree vs BankRate (April 30, 2004)
Ditech Free eApparaisal Service (April 25, 2004)
AmeriTrade's New Promotion (April 15, 2004)
Fidelity MasterCard® Credit Cards (April 15, 2004)
2004 Stock Market Holiday Schedule (April 08, 2004)
Medved QuoteTracker (April 02, 2004)
Insider Activity Tearsheet (March 18, 2004)
Gas Price Tracker (March 09, 2004)
Intelliscope Broadens My Access to Research Reports (March 07, 2004)
Experian National Score Index (March 05, 2004)
Occupational Outlook Handbook, 2004-05 Edition (February 29, 2004)
Providian Real Rewards (February 21, 2004)
SmartMoney Stock Screens (February 21, 2004)
Visa Extras (February 18, 2004)
Excel Add-In: MSN Money Stock Quotes (February 12, 2004)
ExactChoice.com - Buying Guide for Computers (February 04, 2004)
This Year, Everyone Can File Tax For Free! (January 31, 2004)
DJ30 and S&P 500 P/E Ratio (January 24, 2004)
Free Magazines from Northwest Airlines (CFI) (January 11, 2004)
Finding Cheap Magazine Subscriptions (December 31, 2003)
AuctionSniper.com Wins You EBay Bids (December 29, 2003)
Short the NASDAQ (December 19, 2003)
Exchange Gift Cards at CertificateSwap.com (December 15, 2003)
The Ultimate Account Aggregator (December 12, 2003)
New Building Permits Report (December 11, 2003)
"Guru Analysis" from NASDAQ.com (December 11, 2003)
Comparison of Credit Card Sites (December 10, 2003)
FreeTrade.com (December 09, 2003)
Inflation-Protected CDs (December 08, 2003)
iShip.com Helps to Reduce Shipping Cost (December 05, 2003)
Broadband Phone Service: Vonage and Others (November 30, 2003)
Schwab Equity Snapshot Report Offers Little Value (November 28, 2003)
Selling Mileage for Cash (November 28, 2003)
How to Benefit from Weak Dollar? (November 18, 2003)
"Real Estate IRA" (November 17, 2003)
The New Inflation Hedges (November 14, 2003)
Discussion Board at Morningstar.com (November 08, 2003)
Clubphoto.com: Best-Value Online Photo Printing (November 03, 2003)
2.75% Interest Checking Account at Presidential (November 01, 2003)
Financial Risk Manager (FRM) E-Learning Site (November 01, 2003)
FICO Score Estimator (October 28, 2003)
Comparison-Shopping Tools Lure Travelers (October 19, 2003)
Saving Bonds Direct (October 07, 2003)
Upromise.com (October 04, 2003)
ShareBuilder Visa Platinum Card (October 01, 2003)
Cheap Long Distance Service (September 25, 2003)
Eloan.com Credit Monitoring Service (September 24, 2003)
Benefit from Promotions (September 16, 2003)
Stock Research Resources (September 14, 2003)
Cheap Gas - Arco and Safeway (August 22, 2003)
My Top 10 Favorite (Free) Personal Finance Sites (July 29, 2003)


Car Loans
Dallas Bankruptcy Attorney
Personal Loans
Car Finance
Homeowner Loans
Cheap Car Insurance
Mortgages UK & CCJ Mortgage
Used Cars
Commercial Mortgages and Business Loans
Guaranteed Car Finance
Payday Loan
Personal Loan
Student Loan Consolidation.com
Secured Loans
Bad Credit Loans - Free Quote