Upside Down World: I Bonds Pay A Higher Fixed Rate Than EE Bonds

November 30, 2013   |   November 2013 Bond Updates
Savings bonds are sold in two varieties, I bonds and EE bonds. EE bonds pay a fixed rate of interest until maturity (20 years after issue) and then are guaranteed to double in value. I Bonds pay a fluctuating rate of interest which is tied to inflation. Or, to be more precise, I Bonds have a fixed component which remains constant through the life of the bond and a floating component that tracks the Consumer Price Index (CPI-U). On November 1st, 2013 the Treasury Department Announced the rates for newly purchased saving bonds. These rates are applicable for savings bonds purchased from November 1 st, 2013 through April 30th, 2014:

View more at: http://www.forbes.com/sites/marcprosser/2013/11/30/i-bonds-pay-a-higher-fixed-rate-than-ee-bonds/
 
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