phoneguy:

thanks fer the info...All but 1(3.72) are 4.0.Guess I will hang on to em.Dont need the $ so I will continue to for get about it.

You need to make sure to redeem them once they've reached final maturity, (Uncle Sam wants his taxes, and they're due, even if you fail to redeem your bonds!).

Regards,

Mel

Mel Lindauer:

phoneguy:

thanks fer the info...All but 1(3.72) are 4.0.Guess I will hang on to em.Dont need the $ so I will continue to for get about it.

You need to make sure to redeem them once they've reached final maturity, (Uncle Sam wants his taxes, and they're due, even if you fail to redeem your bonds!).

Regards,

Mel

Thanks Mel.....Will do 2/2020 is the start I got some wiggle room..If I can still wiggle!!

I am curious about your comment, "I Bonds are not guaranteed a return?"  Pardon my ignorance, but aren't I Bonds issued by the US Governemnt?

 Would you invest now in I Bonds if you were going to retire in a year or two and hold them thereafter?

Looking for some  more fixed income instruements.

Thanks for any input. 

NJTeacher:

I am curious about your comment, "I Bonds are not guaranteed a return?"  Pardon my ignorance, but aren't I Bonds issued by the US Governemnt?

 Would you invest now in I Bonds if you were going to retire in a year or two and hold them thereafter?

This was meant as a comparison between I and EE bonds..    Yes,  both are issued by the US.  EE Bonds have a guaranteed return if held to maturity with new issues today earning  3.0%.    I Bonds do not have a guaranteed total return.  I Bonds have a variable return with a 1.2% fixed component plus an inflation component.   The inflation component changes every six months.  New I Bond issues today earn 4.28%.   If inflation rises,  I Bonds will earn more.  If we have deflation then I Bonds would earn less.  I prefer I Bonds though.

 I Bonds are safe and give your savings inflation protection.   Remember this though for short term needs, on both I Bonds and EE Bonds.  you cannot redeem them in their first year, and there is a 3 month interest penalty if held less than five years. 

Purchased today the fixed portion for I Bonds is 1.2%.   If you purchase in May the fixed portion may be less or more.   Many believe that the Treasury will lower the fixed portion when new rates are announced on May 1.  If I was considering buying more I bonds I would purchase before May 1 because I am one who believes it is likely that the fixed portion will be lower then.   I could be wrong though.  Regardless, the inflation component will be there for all old and new issues.

I hope this helps you.

Jim  

I wouldn't be so quick to cash in older EE bonds. Older EE bonds generally had better terms than the current ones, and some much so.

Revently, EE bonds went to a fixed income format. These bonds are not a good deal in the current interest rate environment, and so if you bought EE bonds after April 2005, I think those are the ones to sell.

 However, if your EE purchase was before April 2005, I suggest to go to the Treasury Direct website and look up the terms of those older bonds. Some of those bonds have floors of 4% or even 6%. Those are good rates in today's environment, regardless of how well the I-bonds look.

 I would purchase I-bonds with new money or money proceeds from the sale of EE bonds purchased after April 2005. I'd be inclined to keep the rest of the EE bonds until you want to spend the money, or until they reach final maturity.

Steve

hollowcave:

However, if your EE purchase was before April 2005, I suggest to go to the Treasury Direct website and look up the terms of those older bonds. Some of those bonds have floors of 4% or even 6%. Those are good rates in today's environment, regardless of how well the I-bonds look.

What EE Savings Bonds have a current rate floor of 6%?

Ones issued slightly less than five years ago have a current rate of 6.23% because they are losing the three month interest penalty due to turning five years old.

Pat, in response to your question above, here is a statement from the Treasury Direct website regarding older EE savings bonds:

Guaranteed minimum rates were set at the time a bond was issued. Initially, they apply to a bond's original maturity period and are subject to change as a bond enters an extended maturity period. In its extended maturity period, the bond's guaranteed minimum rate becomes the minimum in effect at that time for new issues. The guaranteed minimum rates are:

• 4% for bonds issued March 1993 - April 1995
• 4% for bonds entering an extended maturity period since March 1993
• 6% for bonds issued or entering an extended maturity period between November 1986- February 1993
• 7.5% for bonds issued or extended from November 1982-October 1986